/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070508.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, May 8, 2007, Vol. 8, No. 90 Headlines A U S T R I A ALFRED BERNER: Claims Registration Period Ends May 22 BIOENERGIE BERNARD: Claims Registration Period Ends May 23 BSF LLC: Vienna Court Orders Business Shutdown GIENER LLC: Claims Registration Period Ends May 29 GTK LLC: Claims Registration Period Ends May 29 HIRSCH & PARTNER: Claims Registration Period Ends May 29 JOHANN THALLAUER: Claims Registration Period Ends May 29 MARTH KEG: Claims Registration Period Ends June 1 NUTRO PRODUCTS: Mars Inc. Plans to Buy Pet Food Manufacturer NUTRO PRODUCTS: Moody's Reviews Ratings for Possible Downgrade NUTRO PRODUCTS: S&P Revises Watch to Positive on Mars Takeover B E L G I U M CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million CHIQUITA BRANDS: Incurs US$3.4 Million Net Loss in First Quarter CHIQUITA BRANDS: Weak Quarter Results Cue S&P's Negative Watch ELECTRONIC DATA: Earns US$164 Million in First Quarter 2007 HUDSON HIGHLAND: Robert W. Baird Keeps Outperform Rating on Firm D E N M A R K EASTMAN KODAK: Posts US$151 Million Net Loss in First Quarter GRAPHIC PACKAGING: Moody's Rates US$1.36 Bln Sr. Facility at Ba2 NORTEL NETWORKS: Posts US$103 Mln Net Loss in First Quarter 2007 F R A N C E REXEL SA: Fitch Lifts IDR to BB with Positive Outlook XERIUM TECHNOLOGIES: Secures Amendment to Senior Credit Facility G E R M A N Y BACOC GMBH: Claims Registration Period Ends June 20 BAUELEMENTE LINNER: Claims Registration Period Ends June 4 BAUR & CO: Claims Registration Period Ends June 20 BEKLEIDUNGSWERKE EMIL: Claims Registration Period Ends June 15 BEST SALES: Claims Registration Period Ends June 15 CLEAN MASTER: Claims Registration Period Ends June 11 COGNIS GMBH: Fitch Affirms IDR at B with Stable Outlook COMERGRO GMBH: Claims Registration Period Ends June 5 DAIMLERCHRYSLER: Magna is Chrysler's Sole Serious Bidder: Paper EICHLER AUTOMOBILE: Claims Registration Period Ends June 20 EIGENHEIMBAU GMBH: Claims Registration Period Ends May 11 EUROPLAN 2000: Creditors' Meeting Slated for June 14 EVIDENT GMBH: Creditors' Meeting Slated for June 11 FAIR-WAY GMBH: Claims Registration Ends June 15 FROEHLICH BAUELEMENTE: Claims Registration Ends June 28 GERHARD VORLAUFER: Creditors' Meeting Slated for May 10 GFI GESELLSCHAFT: Claims Registration Period Ends May 25 GOALPLANET GMBH: Claims Registration Ends May 31 KLOECKNER PENTAPLAST: Moody's Reviews Ratings Over Possible Sale KNOEPFLE VERLAGSAUSLIEFERUNGS: Claims Registration Ends June 14 KUECHENHAUS TOTAL: Creditors' Meeting Slated for June 25 LINDNER ELEKTRONIK: Claims Registration Period Ends May 9 LOHFINK ENTSORGUNG: Creditors' Meeting Slated for May 30 MICRONOMICS VERWALTUNGS: Creditors' Meeting Slated for June 11 MOEBEL-REHWALD GMBH: Claims Registration Ends June 28 MONTAGESERVICE NORD: Creditors' Meeting Slated for June 1 NORIS DRUCKVERWALTUNG: Claims Registration Period Ends May 14 NRG ENERGY: Earns US$65 Million in 2007 First Quarter NRG ENERGY: Moody's Holds Corporate Family Rating at Ba3 NRG ENERGY: S&P Lifts Rating on US$4.7 Billion Unsec. Bonds to B NRG ENERGY: Pursues Comprehensive Capital Allocation Plan NRG ENERGY: Fitch Says Common Dividend Plan Won't Affect Ratings PLAN-UND PRUEF: Claims Registration Period Ends June 5 RATHAUSHOTEL OBERWIESENTHAL: Claims Registration Ends June 14 RESTAURATION UND HANDEL: Claims Registration Period Ends June 1 SCHILDERWERK LEIPZIG: Claims Registration Period Ends June 14 TROLLEX TROCKENBAUSERVICE: Creditors' Meeting June 26 TRW AUTOMOTIVE: Credit Suisse Keeps Outperform Rating on Shares VOLMER INNOVATIVE: Claims Registration Period Ends June 6 WIS INDUSTRIESERVICE: Claims Registration Period Ends June 10 H U N G A R Y AES CORP: Unit Faces Nasdaq Delisting Due to Late 10-K Filing I R E L A N D DEKANIA EUROPE: Fitch Puts BB- Ratings on EUR4 Mln Class F Notes RASPADSKAYA SECURITY: Fitch Rates Proposed Notes Issue at B+/RR4 I T A L Y CORDUSIO RMBS: Fitch Rates EUR19.5 Million Class E Notes at BB K A Z A K H S T A N ALMA-ATA URAL: Creditors Must File Claims by June 8 EVROPEISKAYA PODSHIPNIKOVAYA: Creditors' Claims Due June 8 HALYK BANK: Fitch Assigns BB+ Ratings to US$700 Million Loan INVEST PLUS: Proof of Claim Deadline Slated for June 13 NEWPROMSERVICE LLP: Claims Registration Ends June 8 SOIUZ VOSTOK: Claims Filing Period Ends June 8 SP AGROMASHDETAIL: Creditors Must File Claims by June 8 STATUS KYZYLORDA: Creditors' Claims Due June 8 TRANS UNIVERSAL: Proof of Claim Deadline Slated for June 8 K Y R G Y Z S T A N ADASK LLC: Insolvency Manager Sets May 11 Asset Auction BAKTYM LLC: Creditors' Meeting Slated for May 11 L U X E M B O U R G KLOECKNER PENTAPLAST: Moody's Reviews Ratings Over Possible Sale N E T H E R L A N D S KONINKLIJKE AHOLD: S&P Raises Ratings to BBB- from BB+ LIBBEY INC: Board Declares US$0.025 Per Share Quarterly Dividend STICHTING PROFILE: Fitch Affirms BB Ratings on Class E Notes P O R T U G A L INTERTAPE POLYMER: Agrees to Sell Stake to Littlejohn Fund R U S S I A ALTAIR-TRANS CJSC: Creditors Must File Claims by June 14 BALAKHTINSKOYE CJSC: Asset Sale Slated for May 15 EAR OF PRISHIMYE: Creditors Must File Claims by May 14 ENERGY INVESTMENTS: Creditors Must File Claims by May 14 FRIGATE CJSC: Creditors Must File Claims by June 14 GORSKOYE OJSC: Creditors Must File Claims by May 14 GRIBANOVSKIY SUGAR: Creditors Must File Claims by June 14 HOME CREDIT: S&P Lifts Rating to B+ on Likely Parental Support INTER-RESOURCE OJSC: Creditors Must File Claims by May 14 RASPADSKAYA OJSC: Fitch Assign B+ Ratings with Stable Outlook ROS-MIN-VODY: Creditors Must File Claims by May 14 ROSLAYN CJSC: Creditors Must File Claims by May 14 ROSTEK-MURMANSK CJSC: Creditors Must File Claims by May 14 SEL-KHOZ-TEKHNIKA: Creditors Must File Claims by June 14 SEVERSTAL OAO: Annual General Meeting Slated for June 15 STANDARD BANK: S&P Lifts Ratings to BB- on Sustained Growth STAROYURYEV-AGRO-PROM-KHIMIYA: Claims Filing Period Ends May 14 VELSKAYA OJSC: Creditors Must File Claims by May 14 VOLOGODSKAYA HOLDING: Creditors Must File Claims by June 14 YUKOS OIL: Promregion Offers RUR4.9 Billion for Southern Assets S P A I N SANTANDER CONSUMER: S&P Assigns Junk Ratings to Class D Notes S W E D E N BRIGHTPOINT INC: Earns US$35.6 Million in Full Year 2006 S W I T Z E R L A N D ABLANDSCHEN SPORTANLAGEN: Liquidation Claims Due May 23 BY THE WAY: Creditors' Liquidation Claims Due May 29 FIMA CONSULTING: Creditors' Liquidation Claims Due May 25 GROUP 3M: Zug Court Starts Bankruptcy Proceedings JMW PUMPEN: Creditors' Liquidation Claims Due May 21 KANALWURM ABLAUFREINIGUNGS: Liquidation Claims Due May 24 SEVEN LAYERS: Zug Court Starts Bankruptcy Proceedings WIBE LLC: Creditors' Liquidation Claims Due May 23 ZAZA RISTORANTE: Aargau Court Starts Bankruptcy Proceedings ZYTOLAB JSC: Creditors' Liquidation Claims Due May 31 U N I T E D K I N G D O M ADVANSTAR COMMUNICATIONS: Gets Requisite Consents to Amend Notes AES DATA: Proof of Claim Deadline Slated for May 31 ALERIS INTERNATIONAL: Completes EKCO Products Acquisition ALL AMERICAN: Court Approves First Day Motions and DIP Financing AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007 ARMSTRONG WORLD: Earns US$26 Million in Quarter Ended March 31 DARCY INDUSTRIES: Creditors' Meeting Slated for May 15 DECO SERIES: S&P Junks Class E Notes & Removes Negative Watch EDWARDS UKCO: Moody's Assigns (P)B1 Rating on Strong Performance EDWARDS UKCO: S&P Assigns BB- Credit Rating with Stable Outlook EMI GROUP: Confirms Approach of Potential Bidders ENERGY MANAGEMENT: Claims Filing Period Ends May 31 EPICOR SOFTWARE: Prices US$200 Mil. of 2.375% Sr. Notes Offering FORD MOTOR: Navistar Files US$2 Billion Counter Claim FORD MOTOR: U.S. Sales Decreased 13% to 228,623 in April FORD MOTOR: Plans to Open Banking Unit in Russia, Aksakov Says GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36% GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31 GENERAL TRADING: Creditors' Meeting Slated for May 16 HANDMOUNT LTD: Names Malcolm Edward Fergusson Liquidator HEALING TOUCH: Appoints Martin Williamson as Liquidator HINDLEY ELEVATORS: Creditors' Meeting Slated for May 16 ISLE OF CAPRI: Financial Restatements Delay 10-Q Filing with SEC ISLE OF CAPRI: Will Continue Lucaya Resort Casino Operations JAMES SHERATON: Creditors' Meeting Slated for May 15 KL FINISHERS: Joint Liquidators Take Over Operations LEA VALLEY: Ninos Koumettou Leads Liquidation Procedure PRIMUS TELECOMMS: March 31 Balance Sheet Upside-Down by US$472MM ROEBUCK ELECTRONIQUE: Creditors' Meeting Slated for May 15 ROYAL & SUN: Policyholders Have Until May 22 to Cancel Insurance SEW-MON LTD: Creditors' Meeting Slated for May 16 SHAW GROUP: To Redeem Up to US$15.2 Million in Outstanding Notes SHEPPINGDEN LTD: Creditors' Meeting Slated for May 16 SKYEPHARMA PLC: Posts GBP77.7 Million Net Loss in Full Year 2006 SKYEPHARMA PLC: Delisting American Depositary Shares from NASDAQ SOLUTIA INC: March 31 Balance Sheet Upside-Down by US$1.3 Bil. SOLUTIA INC: Gets Open-Ended Lease Decision Deadline SULLIVAN BUSES: Creditors' Meeting Slated for May 16 SUPERSLEEP LTD: Creditors' Meeting Slated for May 15 UEC HOLDINGS: Hires Liquidators from CLB Coopers UPSTAIRS DOWNSTAIRS: Brings In Liquidators from Wilson Field VISTEON CORP: March 31 Balance Sheet Upside-Down by US$106 Mil. * Menzies Chartered Accountants Merges With Callingham Crane * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= ALFRED BERNER: Claims Registration Period Ends May 22 ----------------------------------------------------- Creditors owed money by LLC Alfred Berner (FN 81659m) have until May 22 to file written proofs of claim to court-appointed estate administrator Friedrich Nusterer at: Dr. Friedrich Nusterer Riemerplatz 1 3100 St. Poelten Tel: 02742/47087 Fax: 02742/47089 E-mail: ra-nusterer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:40 p.m. on June 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in St. Poelten, Austria, the Debtor declared bankruptcy on April 16 (Bankr. Case No. 14 S 73/07m). BIOENERGIE BERNARD: Claims Registration Period Ends May 23 ---------------------------------------------------------- Creditors owed money by KEG Bioenergie Bernard (FN 216147p) have until May 23 to file written proofs of claim to court-appointed estate administrator Matthias Schmidt at: Dr. Matthias Schmidt c/o Dr. Rainer Herzig Dr. Karl Lueger-Ring 12 1010 Vienna Austria Tel: 01/533 16 95 Fax: 01/535 56 86 E-mail: schmidt@preslmayr.at herzig@preslmayr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:30 a.m. on June 6 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Hagenbrunn, Austria, the Debtor declared bankruptcy on April 12 (Bankr. Case No. 36 S 53/07x). Rainer Herzig represents Dr. Schmidt in the bankruptcy proceedings. BSF LLC: Vienna Court Orders Business Shutdown ---------------------------------------------- The Trade Court of Vienna entered April 12 an order shutting down the business of LLC BSF (FN 269247b). Court-appointed estate administrator Kurt Freyler recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Kurt Freyler c/o Dr. Hans Rant Seilerstatte 5 1010 Vienna Austria Tel: 513 31 65 Fax: 512 20 01 E-mail: ra-kanzlei@rant-freyler.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 3 (Bankr. Case No 2 S 51/07y). Hans Rant represents Dr. Freyler in the bankruptcy proceedings. GIENER LLC: Claims Registration Period Ends May 29 -------------------------------------------------- Creditors owed money by LLC Giener (FN 107840p) have until May 29 to file written proofs of claim to court-appointed estate administrator Helmut Platzgummer at: Dr. Helmut Platzgummer c/o Dr. Wolfgang Leitner Kohlmarkt 14 1010 Vienna Austria Tel: 533 19 39 Fax: 533 19 39 39 E-mail: helmut.platzgummer@lp-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 12 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 12 (Bankr. Case No. 4 S 42/07i). Wolfgang Leitner represents Dr. Platzgummer in the bankruptcy proceedings. GTK LLC: Claims Registration Period Ends May 29 ----------------------------------------------- Creditors owed money by LLC GTK (FN 242998a) have until May 29 to file written proofs of claim to court-appointed estate administrator Erwin Senoner at: Dr. Erwin Senoner c/o Dr. Georg Freimueller Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 496 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on June 12 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 16 (Bankr. Case No. 4 S 43/07m). Georg Freimueller represents Dr. Senoner in the bankruptcy proceedings. HIRSCH & PARTNER: Claims Registration Period Ends May 29 -------------------------------------------------------- Creditors owed money by LLC Hirsch & Partner (FN 142538s) have until May 29 to file written proofs of claim to court-appointed estate administrator Axel Seebacher at: Mag. Axel Seebacher Bahnhofstrasse 39/EG 9020 Klagenfurt Austria Tel: 0463/31 94 52 Fax: 0463/319452-4 E-mail: seebacher@recht4you.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on June 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on April 17 (Bankr. Case No. 41 S 34/07h). JOHANN THALLAUER: Claims Registration Period Ends May 29 -------------------------------------------------------- Creditors owed money by LLC Johann Thallauer Transporte (14 S 76/07b) have until May 29 to file written proofs of claim to court-appointed estate administrator Georg Thum at: Dr. Georg Thum Josefstrasse 13 3100 St. Poelten Austria Tel: 02742/72 222 Fax: 02742/72 222-10 E-mail: kanzlei@tws-rae.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on June 19 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Wuermla, Austria, the Debtor declared bankruptcy on April 17 (Bankr. Case No. 14 S 76/07b). MARTH KEG: Claims Registration Period Ends June 1 ------------------------------------------------- Creditors owed money by KEG Marth (FN 234940a) have until June 1 to file written proofs of claim to court-appointed estate administrator Roland Paumgarten at: Dr. Roland Paumgarten c/o Mag. Helmut Naschberger Josef Egger-Strasse 3 6330 Kufstein Austria Tel: 05372/62144 Fax: 05372/6214412 E-mail: ra.kanzlei@advocat-tirol.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:30 a.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Kufstein, Austria, the Debtor declared bankruptcy on April 16 (Bankr. Case No. 19 S 37/07z). Helmut Naschberger represents Dr. Paumgarten in the bankruptcy proceedings. NUTRO PRODUCTS: Mars Inc. Plans to Buy Pet Food Manufacturer ------------------------------------------------------------ Mars, Incorporated has signed a definitive agreement to acquire the global pet food operations of Nutro Products Inc. Closing of the purchase of Nutro from funds advised by Bain Capital Partners LLC, a global private investment firm, is subject to normal regulatory approvals which are expected to be completed within a few months. Terms of the deal were not disclosed. The transaction will bring together two of the most recognized names in the petcare industry. Nutro will operate as a stand- alone organization within the Mars family of companies and will maintain its commitment to the pet specialty channel. "This acquisition will enhance our business by providing Mars with Nutro's high quality brands," said Bob Gamgort, North American president for Mars. "These brands are known for quality ingredients, unsurpassed nutrition and high consumer loyalty. Nutro's product portfolio, exceptional sales force, operational excellence, and strong focus on customer service will be an outstanding addition to our business," said Mr. Gamgort. Nutro president and CEO David Kravis, together with the current management team, will continue to operate the business from its headquarters in City of Industry, CA. "We are proud of our relationship with Nutro pet parents, and of the long-standing, mutually supportive relationships we have developed with our specialty pet store partners. We look forward to building on those strengths and our continued commitment to them with the support of Mars," Mr. Kravis said. Goldman, Sachs & Co. is serving as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is acting as counsel to Mars, Incorporated. JP Morgan Chase is serving as financial advisor, and Ropes & Gray LLP is acting as counsel to Nutro Products. About Mars Incorporated Headquartered in McLean, Virginia, USA, Mars, Incorporated -- http://www.mars.com/-- is a worldwide manufacturer of confectionery, pet food and other food products with US$18 billion (USD) in annual sales (2005). The company is entirely owned by the Mars family, making it one of the largest privately owned U.S. corporations. Most of its activities in the US are part of a division known as Masterfoods USA, based in Hackettstown, New Jersey. About Nutro Products Based in City of Industry, California, Nutro Products, Inc. -- http://www.nutroproducts.com/-- formulates and manufactures dry and canned food, biscuits, and treats for dogs and cats. The company's brand names include Natural Choice, MAX, and Gourmet Classics. Its products are available in feed stores and pet supply shops, such as Petco and PetSmart, across the US and Canada. Nutro Products' products are also distributed worldwide, including Indonesia, Peru and Austria, among others. NUTRO PRODUCTS: Moody's Reviews Ratings for Possible Downgrade -------------------------------------------------------------- Moody's Investors Service changed its review for possible downgrade of the ratings of Nutro Products, Inc., including the corporate family rating of B2, to a review for possible upgrade. This change in direction of the review follows the announcement that Mars, Incorporated will acquire the global pet food operations of Nutro, subject to regulatory approvals. Terms of the acquisition by Mars have not been disclosed. Loss-given- default assessments are also subject to change. Ratings under review for possible upgrade: -- Corporate family rating at B2 -- Probability of default rating at B2 -- Senior secured bank term loan at Ba3 -- Senior secured bank revolving credit agreement at Ba3 -- Senior unsecured notes at B3 -- Senior subordinated notes at Caa1 The prior review for possible downgrade, begun on April 11, 2007, was based on Moody's concern that the widening recall of wet pet foods produced by Nutro's third party manufacturer Menu Foods and Nutro's concurrent recall of all Nutro wet pet foods made with wheat gluten. Moody's was concerned that this recall would negatively impact sales and profitability of highly leveraged Nutro, delaying Moody's previously anticipated reduction in leverage beyond the end of fiscal 2007. Moody's review will focus on both the successful execution of the acquisition, the post transaction credit profile of the company and the ultimate disposition of the company's debt. Should most of Nutro's debt be repaid, its ratings will be withdrawn. Based in California, Nutro Products, Inc. -- http://www.nutroproducts.com/-- formulates and manufactures dry and canned food, biscuits, and treats for dogs and cats. The company's brand names include Natural Choice, MAX, and Gourmet Classics. Its products are available in feed stores and pet supply shops, such as Petco and PetSmart, across the US and Canada. Nutro Products' products are also distributed worldwide, including Indonesia, Peru and Austria, among others. NUTRO PRODUCTS: S&P Revises Watch to Positive on Mars Takeover -------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch listing for Nutro Products Inc. to CreditWatch with positive implications, from CreditWatch with negative implications. Ratings were initially placed on CreditWatch on March 30, 2007, reflecting concerns about the potential negative impact on sales related to the Menu Foods pet food recall. This included the 'B-' corporate credit rating and other ratings on the company. CreditWatch with positive implications means that the ratings could be affirmed or raised following the completion of Standard & Poor's review. Total debt outstanding at Dec. 31, 2006, was about US$781 million. "The revision of the CreditWatch listing to positive follows the company's announcement that it has entered into an agreement to be acquired by privately held Mars Inc.," said Standard & Poor's credit analyst Bea Chiem. Terms were not disclosed. "We anticipate that Nutro's outstanding debt will be repaid," said Ms. Chiem. Standard & Poor's will withdraw the ratings on Nutro Products upon repayment of all debt following completion of the transaction, which is expected within 30 to 60 days and is subject to regulatory approval. Based in California, Nutro Products, Inc. -- http://www.nutroproducts.com/-- formulates and manufactures dry and canned food, biscuits, and treats for dogs and cats. The company's brand names include Natural Choice, MAX, and Gourmet Classics. Its products are available in feed stores and pet supply shops, such as Petco and PetSmart, across the US and Canada. Nutro Products' products are also distributed worldwide, including Indonesia, Peru and Austria, among others. ============= B E L G I U M ============= CHIQUITA BRANDS: Selling Cargo Vessels for US$277 Million --------------------------------------------------------- Chiquita Brands International Inc. has signed definitive agreements to sell its 12 refrigerated cargo vessels for US$227 million. The ships will be chartered back from an alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties also entered a long-term strategic agreement in which the alliance will serve as Chiquita's preferred supplier in ocean shipping to and from Europe and North America. As part of the transaction, Chiquita will lease back 11 of the vessels for a period of seven years, with options for up to an additional five years, and one vessel for a period of three years, with options for up to an additional two years. The vessels to be sold consist of eight reefer ships and four container ships, which collectively transport approximately 70 percent of Chiquita's banana volume shipped to core markets in Europe and North America. The agreements also provide for the alliance to service the remainder of Chiquita's core ocean shipping needs for North America and Europe, including through multiyear time charters commencing in 2008 for seven additional reefer vessels. "This long-term arrangement will increase our financial flexibility, simplify our business model and allow us to increase our focus on providing branded, healthy, fresh foods to consumers worldwide," Fernando Aguirre, Chiquita's chairman and chief executive officer, said. "We are confident that the alliance parties, whose core business is global shipping, will ensure the continuing reliable, high-quality shipment of Chiquita products. The ship sale transaction will significantly reduce our debt, and the alliance will better position us to adapt our shipping services as we grow our business over time. At the same time, we anticipate that this transaction will generate synergies and help to keep operating costs competitive. Additionally, the long-term ship leases will help insulate us from further industry operating cost increases on a significant portion of our logistics portfolio for several years to come." "This transaction is an exciting and rare opportunity to acquire a large, modern, highly efficient refrigerated fleet and to work with one of the best names in the produce industry," John Kousi, chairman of Eastwind Maritime, said. "Not only is this a great opportunity to grow with Chiquita, but it also provides an excellent platform on which to optimize capacity and achieve cost synergies in the global shipment of produce, which is key to our business." The parties expect to complete the transaction within 45 days. The alliance parties have committed to maintain the same high social and environmental standards and certifications that Chiquita introduced in its shipping operations, including International Maritime Organization, American Bureau of Shipping, ISO 9002, and ISO 14001 safety, quality and environmental standards as well as Chiquita's code standards related to labor conditions. As of March 31, 2007, the net book value of the assets to be transferred in the transaction approximated US$125 million. Chiquita expects to realize an after-tax gain on the transaction of approximately US$100 million, which will be amortized over the initial terms of the ship charters. The cash proceeds from the transaction will be used to repay approximately US$170 million of debt, including US$90 million of ship mortgage debt and US$80 million in term loan and revolving credit borrowings. The remainder will be retained for general corporate purposes, including growth investments. The company's total-debt-to- capitalization ratio of 55 percent at March 31, 2007, would have been approximately 51 percent pro forma for the debt reduction resulting from the transaction. While EBITDA and operating income will be reduced because of the conversion from owned assets to operating leases, the transaction is expected to be accretive to net income and EPS beginning in 2007, despite US$4 million in one-time costs for severance and the writeoff of deferred financing costs, which will be expensed in the second quarter. The company estimates that it will achieve synergies of approximately US$2 million in 2007 and US$4 million in 2008 through efficiencies such as route combinations, cargo sharing and increased backhaul revenues. Transaction's Estimated Impact, Including Synergies (US$ millions except EPS) 2007 2008(1) EBITDA (US$12) (US$14) Depreciation 7 11 Operating Income (5) (3) Net Income 1 11 EPS 0.03 0.25 Chiquita anticipates additional improvement during the subsequent six-year period (2009-2014), because the company will not incur certain inflationary operating expenses due to the fixed lease rates established in the agreement. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * Moody's Investors Service downgraded the ratings for Chiquita Brands L.L.C., as well as for its parent Chiquita Brands International, Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. CHIQUITA BRANDS: Incurs US$3.4 Million Net Loss in First Quarter ---------------------------------------------------------------- Chiquita Brands International Inc. reported a net loss of US$3.4 million, including a charge of US$5 million related to a decision to exit certain unprofitable farm leases in Chile. This compares to net income of US$19.5 million in the year-ago period. First quarter net sales increased by 3 percent year- over-year to US$1.19 billion, from net sales of US$1.15 billion in the prior year quarter. "During the first quarter, we continued to make good progress in both our banana and salad operations," said Fernando Aguirre, chairman and chief executive officer. "In Europe, we grew volume while maintaining our premium market position and profitability, despite last year's onerous regulatory changes. In our North American banana business, we also grew volume, recovered cost increases, and are successfully introducing higher-margin, innovative products to differentiate the Chiquita brand. "At Fresh Express, we have strengthened our No. 1 position in retail value-added salads and reinforced our food safety leadership in the face of soft consumer demand for packaged salads. While these primary segments are improving, we have also taken decisive actions to improve profits in our other produce operations, including exiting certain farm operations in Chile. Aguirre concluded, "Overall, while we have faced several obstacles in recent quarters, I am confident that Chiquita is on the right path, and we saw tangible signs of progress in the first quarter. We remain committed to deliver sustainable, profitable growth, and we expect 2007 to be a positive step in reaching those goals." Quarterly sales rose primarily due to increased banana volume in Europe and North America and favorable foreign exchange rates, partly offset by lower local banana pricing in Europe. Operating income decreased to US$18 million in the first quarter of 2007, compared to operating income of US$39.3 million in the first quarter of 2006, due to higher purchased fruit and other industry costs, lower local banana pricing in the European market, higher costs due to a record January freeze in Arizona, which affected lettuce sourcing, and the charge related to a decision to exit certain farm leases in Chile. These were partially offset by favorable year-over-year European exchange rates and the absence of residual costs from Tropical Storm Gamma that affected the year-ago period. Total debt increased to US$1.06 billion at the end of the first quarter of 2007, compared to total debt of US$1.02 billion at March 31, 2006. The increase in total debt was due to US$36 million of borrowings on the company's revolving credit facility in the first quarter 2007, which brought total borrowings under the facility to US$80 million at March 31, 2007, compared to US$27 million at March 31, 2006. Strategic Shipping Transaction Chiquita recently announced it has signed definitive agreements to sell its 12 refrigerated cargo vessels for US$227 million. The ships will be chartered back from an alliance formed by Eastwind Maritime Inc. and NYKLauritzenCool AB. The parties also entered a long-term strategic agreement in which the alliance will serve as Chiquita's preferred supplier in ocean shipping to and from Europe and North America. About Chiquita Brands Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is an international marketer and distributor of high-quality fresh and value-added food products - from bananas and other fruits to nutritious blends of convenient green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. * * * In November 2006, Moody's Investors Service downgraded its ratings for Chiquita Brands LLC, as well as for its parent Chiquita Brands International Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. S&P said the ratings remain on CreditWatch with negative implications where they were placed on Sept. 26. CHIQUITA BRANDS: Weak Quarter Results Cue S&P's Negative Watch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. "The CreditWatch placement follows the company's announcement of weak first-quarter operating results due to high purchased fruit and other industry costs and lower local banana prices in Europe," said Standard & Poor's credit analyst Alison Sullivan. Adjusted EBITDA fell about 35% in the quarter, which resulted in over 9x leverage for the 12 months ending March 31, 2007. Costs are likely to remain under pressure due to raw products, fuel, ship charter, paper, and resin prices. "We are concerned that operating trends and credit measures continue to deteriorate," said Ms. Sullivan. "Weak industry trends, including continuing adjustment to European markets following the tariff regime change, and uncertain timing surrounding restoration of consumer confidence to return to packaged salads, are likely to persist." Standard & Poor's will review Chiquita Brands' operating and financial plans with management before resolving the CreditWatch listing. Standard & Poor's will also review the impact of debt repayment on existing recovery ratings as part of this review. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 70 countries including Panama, Philippines, Australia, Belgium, Germany, among others. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. ELECTRONIC DATA: Earns US$164 Million in First Quarter 2007 ----------------------------------------------------------- Electronic Data System Corp. reported a net income of US$164 million first quarter ended March 31, 2007, versus a net income of US$24 million for the first quarter ended March 31, 2006. First quarter revenues increased to US$5.2 billion from US$5.1 billion in the year-ago quarter. First quarter revenue decreased on an organic basis, which excludes the impact of currency fluctuations, acquisitions and divestitures. "EDS recorded another successful quarter as we continued to improve our operational performance and further strengthen our financial position," said Mike Jordan, EDS chairman and chief executive officer. "As EDS continues to broaden its base and capabilities -- as well as reposition the business and develop attractive segments -- our ability to provide effective business solutions to our clients continues to expand." "EDS' continued improvement in earnings reflects traction in our key initiatives," said president and chief operating officer Ron Rittenmeyer. "Despite what appear to be softer market conditions, EDS' signings were solid. The quarter reflected specific expansion activities in our Best Shore delivery network; marked increases in quality assurance metrics; and, most significantly, momentum and strength in our applications business where we continue to grow." EDS signed US$3.4 billion in contracts in the first quarter of 2007 versus US$10 billion in the year-ago quarter, which included US$3.6 billion with General Motors and US$3.9 billion with the U.S. Department of the Navy. EDS signed seven deals in the first quarter of 2007 with contract values greater than US$100 million with clients in the communications, consumer goods and retail, financial services, and manufacturing industries. Free cash flow was US$8 million outflow in the first quarter versus US$38 million outflow for the year-ago period. As of March 31, 2007, the company listed total assets valued at US$17.8 billion, total liabilities of US$9.6 billion, and minority interest of US$385 million, resulting in a total stockholders' equity of US$7.9 billion. Cash, cash equivalents and marketable securities as of March 31, 2007, were US$2.8 billion and US$45 million, respectively. First Quarter Results by Segment * Americas First quarter revenue was US$2.62 billion, up compared to the prior-year period. Operating profit was US$405 million, up from US$337 million in the prior-year period. * EMEA First quarter revenue was US$1.45 billion, down from the prior- year period, and down on an organic basis. Operating profit was US$179 million, up from US$178 million in the prior-year period. * Asia-Pacific First quarter revenue was US$409 million, up from the prior-year period, primarily due to MphasiS revenues. Operating profit was US$38 million, up from US$24 million in the prior-year period. * U.S. Government First quarter revenue was US$623 million, down from the prior- year period. Operating profit was US$122 million, up from US$43 million in the prior-year period. 2007 Updated Guidance The company reaffirms prior revenue guidance of US$22 billion to US$22.5 billion, free cash flow guidance of US$1 billion to US$1.1 billion, and total contract value guidance of US$23 billion-plus. For the second quarter of 2007, EDS currently expects revenue of US$5.3 billion to US$5.5 billion. About EDS Corp. Based in Plano, Texas, Electronic Data System Corp. (NYSE: EDS) -- http://www.eds.com/-- is a global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. * * * Electronic Data Systems Corp.'s 7-1/8% Notes due 2009 carry Moody's Investors Service's Ba1 rating. HUDSON HIGHLAND: Robert W. Baird Keeps Outperform Rating on Firm ---------------------------------------------------------------- Robert W. Baird analysts have kept their "outperform" rating on Hudson Highland Group's shares, Newratings.com reports. Newratings.com relates that the target price for Hudson Highland's shares was set at US$19. The analysts said in a research note published on May 3 that Hudson Highland reported its results for the first quarter 2007 ahead of the estimates in all regions. The analysts told Newratings.com that Hudson Highland's performance in North America appears "to be stabilizing." Profit increase in its European and Asia Pacific operations in the first quarter 2007 was strong. Hudson Highland's second quarter guidance seems robust, Newratings.com states, citing Robert W. Baird. Headquartered in New York, New York, Hudson Highland Group, Inc. (Nasdaq: HHGP)-- http://www.hhgroup.com/-- is a provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries including Argentina, Australia, Belgium, Brazil, and Canada. * * * As reported in the Troubled Company Reporter on Nov. 7, 2006, Moody's Investors Service assigned a Ba2 rating to the company's US$7,500,000 Income Notes Due 2042. ============= D E N M A R K ============= EASTMAN KODAK: Posts US$151 Million Net Loss in First Quarter ------------------------------------------------------------- Eastman Kodak Company reported financial results for the first quarter of 2007. The net loss for the first quarter of 2007 was US$151 million, compared with a net loss for the first quarter of 2006 of US$298 million, representing an improvement in earnings of US$147 million or 49%. Sales totaled US$2.12 billion, a decrease of 8% from US$2.29 billion in the first quarter of 2006. Digital revenue totaled US$1.21 billion, a 3% decrease from US$1.25 billion. Traditional revenue totaled US$896 million, a 13% decline from US$1.02 billion in the year ago quarter. New Technologies revenue was US$13 million in the first quarter, compared with US$16 million in the year-ago period. Kodak held US$1.02 billion in cash and cash equivalents as of March 31, 2007, consistent with the company's goal of maintaining at least US$1 billion in cash on its balance sheet. As of March 31, 2007, the company's debt level was US$2.75 billion. With the completion of the sale of Kodak's Health Group to an affiliate of Onex Corporation, the company has now fully repaid approximately US$1.15 billion of secured term debt. Gross Profit was 20.2%, down from 20.5%, primarily attributable to approximately US$30 million of adverse silver and aluminum costs, partially offset by the favorable impact of foreign exchange. "I'm very pleased with our first-quarter performance, in which we made significant progress on our two key objectives for 2007 -- new product success and cost reduction," Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company, said. "Thus far the year is proceeding on plan. Both our Consumer Digital and Film Products groups were well ahead of plan. On the product side, we successfully launched a revolutionary line of inkjet products, and at the recent AIIM/On Demand Conference our Graphic Communications Group introduced several award-winning products that broadened our portfolio of solutions. We also significantly reduced our SG&A expenses, improved our receivables performance, and ended the quarter with more than US$1 billion in cash on our balance sheet. When we conclude the sale of our manufacturing facility in Xiamen, China, we will have completed the last, significant step in our manufacturing restructuring." At this time, the company has not yet completed the full balance sheet and cash flow analysis adjusted for the impact of discontinued operations. These items will be detailed in the company's first quarter Form 10Q filing on or before May 10, 2007. However, current estimates suggest that the company achieved a year-over-year improvement in net cash generation in the range of US$175 million to US$200 million. This corresponds to an estimated improvement in net cash used in continuing operations from operating activities in the range of US$150 million to US$175 million. Updated 2007 Outlook Kodak remains focused on three financial metrics as it continues to transform its business: * net cash generation, * digital earnings from operations and * digital revenue growth. The company has decided to increase its inkjet investment by as much as US$50 million in order to fully capitalize on strong customer reaction. As a result, the company expects net cash generation this year of greater than US$100 million (after restructuring cash disbursements of approximately US$600 million), compared with the previous net cash generation estimate of US$100 million to US$200 million. Additionally, the company now expects 2007 full-year digital earnings from operations of US$150 million to US$250 million. Finally, the company continues to forecast 2007 digital revenue growth of 3% to 5%, with total 2007 revenue expected to be down between 4% and 7%. Health Group Sale Closed On April 30, 2007, the company completed the sale of its Health Group to an affiliate of Onex Corporation for up to US$2.55 billion. At closing Kodak received US$2.35 billion in cash with the potential to receive up to US$200 million in additional future payments if Onex achieves certain returns with respect to its investment. About Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. * * * In February 2007, Moody's Investors Service said it is continuing its review on Eastman Kodak's ratings for possible downgrade including Corporate Family Rating at B1, Senior Unsecured Rating at B2, and Senior Secured Credit Facilities at Ba3. GRAPHIC PACKAGING: Moody's Rates US$1.36 Bln Sr. Facility at Ba2 ---------------------------------------------------------------- Moody's assigned Ba2 ratings to Graphic Packaging International's proposed US$1.06 billion seven-year senior secured term loan B and its proposed US$300 million six-year senior secured revolving credit facility. The proceeds of the term loan B facility will be used to refinance the term loan C under the existing credit agreement. The refinancing enables Graphic to extend maturities, remove financial maintenance covenants from the term loan only, and to benefit from lower borrowing costs. All other ratings were affirmed by Moody's. Subsequent to the outlook change to negative from stable in October of 2005, Graphic has generated operating results that have been better than expected in 2006 and early 2007. Energy costs have begun to moderate, additional mill closures have been announced in the paperboard sector, prices for CUK (coated unbleached kraft) and CRB (coated recycled board) have increased, cost savings have been executed, and certain renegotiated contracts in the beverage sector have economically benefited the company. Even with this progress, however, Moody's believes that flat-to-slightly negative demand levels within the consumer packaging paper industry could affect recent price increases and the company's ability to materially improve margins on a sustainable basis. Thus, the company's actual debt reduction over the intermediate period may not support the existing ratings. Moody's continues to maintain a negative outlook on the ratings based on these concerns. Graphic's B1 corporate family rating reflects the company's leading position in folding consumer cartons and coated unbleached kraft paperboard, extensive customer relationships, continued focus on cost improvements, margin stability, and adequate liquidity. However, the ratings also incorporate Graphic's high leverage, weak credit metrics, and elevated input costs. Graphic Packaging International, Inc. (Graphic), located in Marietta, Georgia, is a provider of paperboard packaging solutions. NORTEL NETWORKS: Posts US$103 Mln Net Loss in First Quarter 2007 ---------------------------------------------------------------- Nortel Networks Corp. released its financials results for the first quarter ended March 31, 2007, prepared in accordance with United States generally accepted accounting principles. Nortel posted US$103 million in net losses against US$2.5 billion in revenues for the first quarter ended March 31, 2007, compared with US$171 million in net losses against US$2.4 billion in revenues for the same period in 2006. At March 31, 2007, the Company's balance sheet showed US$18.7 billion in total assets, US$15.2 billion in total liabilities and US$2.7 billion in stockholders' equity. "I am very pleased with our revenue and gross margin performance to start the year. Our first quarter revenues grew 4 percent year over year or 12 percent if you consider that we divested our UMTS Access business at the end of last year, and we showed positive cash flow from operations for the second quarter in a row excluding the impact of the litigation settlement" Mike Zafirovski, President and CEO, Nortel, said. "While our first quarter results demonstrated significantly improved financial performance, we must and will continue our relentless pursuit of customer satisfaction and business transformation to deliver on our 2007 business plan." Outlook "For the full year 2007, we continue to expect revenues to be flat to down slightly compared to 2006, reflecting a decrease in revenues as a result of the UMTS Access disposition. We expect full year 2007 gross margin to be in the low 40's, as a percentage of revenues, and operating margin to be at 5 percent, or higher, of revenues, David Drinkwater, interim chief financial officer, Nortel said. "For the second quarter of 2007, we expect revenues to be flat to down slightly compared to the year ago quarter. We expect second quarter of 2007 gross margin to be around 40, as a percentage of revenue, and operating expenses (SG&A and R&D) to be down by high single digits, compared to the year ago quarter," Mr. Drinkwater added. About Nortel Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges Nortel does business in more than 150 countries including the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. * * * Dominion Bond Rating Service confirmed the long-term ratings of Nortel Networks Capital Corporation, Nortel Networks Corporation, and Nortel Networks Limited at B (low) along with the preferred share ratings of Nortel Networks Limited at Pfd-5 (low). All trends are Stable. DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt; Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5 (low) Stb Class A, Non-Cumulative Redeemable Preferred Shares. Additionally, Moody's Investors Service affirmed the B3 corporate family rating of Nortel; assigned a B3 rating to the proposed US$2billion senior note issue; downgraded the US$200 million 6.875% Senior Notes due 2023 and revised the outlook to stable from negative. Standard & Poor's also affirmed its 'B-' long-term and 'B-2' short-term corporate credit ratings on the company, and assigned its 'B-' senior unsecured debt rating to the company's proposed US$2 billion notes. S&P said the outlook is stable. =========== F R A N C E =========== REXEL SA: Fitch Lifts IDR to BB with Positive Outlook ----------------------------------------------------- Fitch Ratings upgraded Rexel SA's Issuer Default rating to 'BB' from 'B+' and removed it from Rating Watch Positive. A Positive Outlook is assigned. The rating action follows the successful final completion of the IPO, together with the application of proceeds to debt retirement. This includes the full redemption of the EUR600 million senior subordinated notes issued by Ray Acquisition SCA. Fitch has also assigned Rexel's new EUR1.8 billion senior credit facilities post-IPO a 'BB+' rating. These ratings have been affirmed and withdrawn: -- Rexel's senior secured facilities: 'BB' / 'RR2' -- Ray Acquisition's senior subordinated notes due 2015: 'B-' /'RR6' "The changes to the capital structure place the group in a stronger position to deal with potentially softening trading conditions in key markets such as North America, as well as more normalized sales growth and profits, with little or no copper inflation," said Pablo Mazzini, Director in Fitch's Leveraged Finance team in London. "Given its size, geographical diversification and free cash flow generation prospects, further de-leveraging is expected, hence the Positive Outlook." The net de-leveraging effect from the use of IPO proceeds in the redemption of debt and the refinancing of the LBO acquisition debt with corporate-like loans are deemed positive rating factors. Furthermore, the expected cost savings derived from the GE Supply and other bolt-on acquisitions made recently, along with organic growth in Rexel's core European markets, suggest good prospects for free cash flow generation. Fitch expects annual free cash flow at least within the range of EUR300 million to EUR350 million between 2007 and 2009. This compares to an annual average figure of EUR260m between 2001 and 2004. As a result, Fitch expects net lease-adjusted leverage to be at the low end of 4x-4.7x range and net debt in the 3x-4x range by 2009, all of which support a mid-to-high 'BB' rating range. The Positive outlook reflects Fitch's view that further rating upside is possible although the agency will monitor the size and profile of additional acquisitions which are debt-funded, and the potential use of existing cash which may result in shareholder-friendly measures such as share buybacks or exceptional dividend pay-outs. While some US and Canadian subsidiaries will guarantee Rexel's obligations, the new credit facilities are considered unsecured obligations. Nevertheless, the rating is notched one level up from the IDR to 'BB+' to reflect the lack of material secured debt outstanding ranking ahead of the unsecured debt and below- average financial leverage for the assigned rating level, in particular after excluding the estimated portion of the securitization of receivables for the purpose of the generic recovery analysis. The debt rating also reflects the underlying resilience of Rexel's primary operations in the face of a debt restructuring, whereby individual subsidiaries could be sold separately to trade or financial buyers to repay debt. XERIUM TECHNOLOGIES: Secures Amendment to Senior Credit Facility ---------------------------------------------------------------- Xerium Technologies Inc. disclosed that it has secured an amendment to its existing senior credit facility, amended its agreement with certain shareholders with respect to the company's dividend reinvestment plan, changed its dividend policy and reaffirmed elements of its investment plan. The company's Board of Directors also declared a cash dividend under the new dividend policy. "These steps together provide improved financial flexibility to the company that we believe will enable us to capitalize more aggressively on the long-term growth opportunities while accelerating reduction of our debt and improving our overall capital structure," Thomas Gutierrez, Xerium's Chief Executive Officer, said. "Given the additional flexibility provided in part by the reduction in dividend, we expect to pursue our previously-announced plans to build a clothing manufacturing operation in Vietnam, fund additional investments in our roll cover business, expand our presence in South America and implement further actions aimed at reducing our overall cost structure." "We are also exploring expansion opportunities in Eastern Europe consistent with our efforts to continue to improve our competitive position in the marketplace and better serve the needs of our customers," Mr. Gutierrez added. "We have identified a significant array of investment opportunities that we believe would improve Xerium's growth profile and profitability over time. As such, we expect to continue to review our capital structure and strategic alternatives to insure that we are taking the best advantage of these opportunities." The amendment to the credit facility includes, among other changes, these changes: * reduction of the minimum interest coverage ratio covenant for the period from the second quarter of 2007 through 2012 and of the minimum fixed charge ratio covenant for the period from the second quarter of 2007 through 2012. * changes to previously existing covenant limiting dividends to make it more restrictive and the insertion of a covenant limiting the quarterly dividend payable on common stock of the company to not more than US$0.1125 per share in addition to the other restrictions on dividends. * reduction of mandatory excess cash flow prepayment percentages in the event there is Excess Cash (as defined in the Credit Agreement) to 40% in fiscal year 2007, 27.5% in fiscal year 2008, and 50% in each fiscal year thereafter. * changes to the definition of Adjusted EBITDA to add back Consolidated Restructuring and Growth Program Costs, subject to certain limitations. * other changes that provide enhanced flexibility to invest in capital expenditures, joint ventures and acquisitions, subject to various restrictions. In connection with the amendment, the company paid an amendment fee of approximately US$1.5 million, as well as other fees and expenses. Dividend Reinvestment Plan Participation In connection with the changes to the credit agreement, certain investment entities managed directly or indirectly by Apax Europe IV GP Co Ltd have extended their commitment to participate in the company's dividend reinvestment plan through Dec. 31, 2008 pursuant to terms in place under the December 2006 agreement between these Apax entities and the company. As of April 1, 2007, the Apax entities collectively held 23,532,351.8 shares of common stock of the company or approximately 53% of the outstanding common stock of the company. New Dividend Policy In addition, Xerium's Board of Directors has re-evaluated the company's existing dividend policy adopted in May 2005, and the rate at which Xerium has paid quarterly dividends. The Board determined to adopt a new dividend policy under which quarterly dividends will be paid at an amount to be determined by the Board on a quarterly basis taking into account those factors deemed relevant by the Board. These factors may include such matters as the company's financial performance, the sufficiency of cash flow from operations to fund dividends, credit facility limitations, growth opportunities and debt repayments considerations. Under the new dividend policy, on May 2, 2007, the company's Board of Directors declared a cash dividend of US$0.1125 per share of common stock payable on June 15, 2007, to shareholders of record as of the close of business on June 5, 2007. This reflects a reduction from the quarterly dividend paid in the preceding six quarters of US$0.225 per common share. About Xerium Xerium Technologies Inc. (NYSE: XRM) -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,800 employees. * * * As reported in the Troubled Company Reporter on Feb. 13, 2007, Moody's Investors Service downgraded Xerium Technologies': Corporate Family Rating, to B2 from B1; Senior Secured Term Loan, to B2 from B1; Senior Secured Revolving Credit Facility, to B2 from B1; and Probability of Default Rating, to B2 from B1. ============= G E R M A N Y ============= BACOC GMBH: Claims Registration Period Ends June 20 --------------------------------------------------- Creditors of bacoc GmbH have until June 20 to register their claims with court-appointed insolvency manager Gideon Boehm. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on July 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against bacoc GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Gideon Boehm Bachstrasse 85 a 22083 Hamburg Germany The Debtor can be reached at: bacoc GmbH Attn: Stefan Johannes Baustert, Manager Hoheluftchaussee 52 20253 Hamburg Germany BAUELEMENTE LINNER: Claims Registration Period Ends June 4 ---------------------------------------------------------- Creditors of Bauelemente Linner GmbH have until June 4 to register their claims with court-appointed insolvency manager Hans-Peter Lehner. Creditors and other interested parties are encouraged to attend the meeting at 10:25 a.m. on July 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Regensburg Hall 105 Augustenstr. 5 Regensburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Regensburg opened bankruptcy proceedings against Bauelemente Linner GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Hans-Peter Lehner Ditthornstr. 5 93055 Regensburg Germany Tel: 0941/640820-0 Fax: 0941/640820-10 The Debtor can be reached at: Bauelemente Linner GmbH Rosenhofer Str. 16 93098 Mintraching Germany BAUR & CO: Claims Registration Period Ends June 20 -------------------------------------------------- Creditors of Baur & Co. GmbH have until June 20 to register their claims with court-appointed insolvency manager Herbert Duerkop. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on July 20, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against Baur & Co. GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Herbert Duerkop Neuer Wall 86 20354 Hamburg Germany The Debtor can be reached at: Baur & Co. GmbH Attn: Harald Schuemann, Manager Steilshooper Strasse 178 22305 Hamburg Germany BEKLEIDUNGSWERKE EMIL: Claims Registration Period Ends June 15 -------------------------------------------------------------- Creditors of Bekleidungswerke Emil Wurster GmbH & Co. KG have until June 15 to register their claims with court-appointed insolvency manager Juergen Sulz. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on July 10, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Tuebingen Hall 208 Second Floor Branch Office Schulberg 14 72074 Tuebingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Tuebingen opened bankruptcy proceedings against Bekleidungswerke Emil Wurster GmbH & Co. KG on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Juergen Sulz Rommelsbacher Str. 27 72760 Reutlingen Germany The Debtor can be reached at: Bekleidungswerke Emil Wurster GmbH & Co. KG Attn: Hans-Emil Wurster, Manager Carl-Zeiss-Str. 5 72555 Metzingen Germany BEST SALES: Claims Registration Period Ends June 15 --------------------------------------------------- Creditors of "Best Sales & Services" Modeagentur Frank Meyer GmbH have until June 15 to register their claims with court- appointed insolvency manager Gideon Boehm. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hamburg opened bankruptcy proceedings against "Best Sales & Services" Modeagentur Frank Meyer GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Gideon Boehm Bachstrasse 85 a 22083 Hamburg Germany The Debtor can be reached at: "Best Sales & Services" Modeagentur Frank Meyer GmbH Attn: Frank Meyer, Manager Peutestrasse 53D 20539 Hamburg Germany CLEAN MASTER: Claims Registration Period Ends June 11 ----------------------------------------------------- Creditors of Clean Master GmbH have until June 11 to register their claims with court-appointed insolvency manager Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on July 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Dortmund opened bankruptcy proceedings against Clean Master GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany The Debtor can be reached at: Clean Master GmbH Hannoeversche Str. 24 44143 Dortmund Germany Attn: Cetin Senol, Manager Oesterholzstr. 111 44145 Dortmund Germany COGNIS GMBH: Fitch Affirms IDR at B with Stable Outlook ------------------------------------------------------- Fitch Ratings affirmed Germany-based Cognis GmbH's Issuer Default rating at 'B' with a Stable Outlook. The rating action follows Cognis's recent announcement to refinance its existing EUR1.29 billion senior secured and second lien facilities as well as EUR350 million of the existing payment-in-kind notes. At the same time, Fitch has assigned Cognis's new undrawn EUR250 million super senior secured revolving facility 'BB'/'RR1' ratings and new EUR1.65 billion cash-pay senior secured floating-rate notes and loans 'BB-'/'RR2' ratings. This follows the successful consent of the bondholders of its 9.5% high yield notes maturing in 2014 for the proposed refinancing. Cognis's existing EUR345 million high-yield notes and Cognis Holding GmbH's remaining EUR344 million PIK notes are affirmed at 'CCC+'/'RR6' and 'CCC'/'RR6' respectively. Furthermore, Fitch has affirmed the ratings of 'BB'/'RR1' on the refinanced senior secured facilities and 'B-'/'RR5' on the refinanced second lien facilities issued by Cognis Deutschland GmbH & Co KG and its local subsidiaries and withdrawn them. The IDR reflects Cognis's global leading position in care chemicals and nutrition and health, which together represent over 65% of its EBITDA. The rating is also supported by the company's overall improved operating performance and the additional financial flexibility from the back-ended refinancing that reduces financial charges including cash interest and debt amortization by approximately EUR55 million to EUR60 million annually. The rating, however, is constrained by Cognis's higher gross cash-pay financial leverage at 5.8x, compared to 4.8x before the transaction, based on the reported FY2006- EBITDA. As a further result of the refinancing proposal major debt reduction in the short to medium term will be unlikely, delaying the de-leveraging process. Cognis is a worldwide supplier of innovative specialty chemicals and nutritional ingredients. The company employs about 7,700 people and operates production sites and service centres in 30 countries. Cognis generated revenues of EUR3.372 billion and EBITDA of EUR365 million in FY06. COMERGRO GMBH: Claims Registration Period Ends June 5 ----------------------------------------------------- Creditors of Comergro GmbH & Co. Han-dels KG have until June 5 to register their claims with court-appointed insolvency manager Thomas Krafft. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on July 11, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cottbus Hall 210 First Floor Gerichtsplatz 2 03046 Cottbus Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Cottbus opened bankruptcy proceedings against Comergro GmbH & Co. Han-dels KG on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Thomas Krafft Jagerallee 37 H 14469 Potsdam Germany The Debtor can be reached at: Comergro GmbH & Co. Han-dels KG Gleis 17 03042 Cottbus Germany DAIMLERCHRYSLER: Magna is Chrysler's Sole Serious Bidder: Paper --------------------------------------------------------------- Canadian auto parts supplier Magna International Inc. is currently the "only party seriously interested in Chrysler," German newspaper Automobilwoche wrote on Saturday, citing a source familiar with the negotiations, Reuters relates. The TCR-Europe reported on May 2 that Magna leads the race for DaimlerChrysler AG's Chrysler Group and could grab a much larger stake in the ailing unit, potentially taking a direct minority ownership stake of between 25% and 50%. According to the Reuters report, investment bankers are intentionally leaking talks with private equity firms Cerberus and Blackstone but these are being held "only for tactical reasons." Daimler is expected to make a decision this month, with a sale to Magna slated to conclude in two months, Reuters states, citing Automobilwoche as its source. The German paper reported that Daimler would initially continue to hold a stake in the loss-making unit. The paper also wrote that insiders say Magna will probably sell Chrysler again once the restructuring is successfully concluded, Reuters notes. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. EICHLER AUTOMOBILE: Claims Registration Period Ends June 20 ----------------------------------------------------------- Creditors of Eichler Automobile GmbH have until June 20 to register their claims with court-appointed insolvency manager Jens Wilhelm V. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on July 18, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hannover Hall 226 Second Floor Service Bldg. Hamburger Allee 26 30161 Hannover Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hannover opened bankruptcy proceedings against Eichler Automobile GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Jens Wilhelm V Hohenzollernstrasse 53 30161 Hannover Germany Tel: 0511 696846-0 Fax: 0511 696846-79 The Debtor can be reached at: Eichler Automobile GmbH Attn: Clemens Jerg, Manager Rendsburger Str. 9 30659 Hannover Germany EIGENHEIMBAU GMBH: Claims Registration Period Ends May 11 --------------------------------------------------------- Creditors of Eigenheimbau GmbH & Co. have until May 11 to register their claims with court-appointed insolvency manager Heiko Rautmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on June 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Justice Center Breiter Weg 203 - 206 39104 Magdeburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Magdeburg opened bankruptcy proceedings against Eigenheimbau GmbH & Co. on April 3. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Heiko Rautmann Editharing 31 39108 Magdeburg Germany Tel: 0391/5066030 Fax: 0391/5066033 E-Mail: Heiko.Rautmann@gmx.de The Debtor can be reached at: Eigenheimbau GmbH & Co. Attn: Detlef Rapmund, Manager Stuecken 9 38820 Halberstadt Germany EUROPLAN 2000: Creditors' Meeting Slated for June 14 ---------------------------------------------------- The court-appointed insolvency manager for EUROPLAN 2000 Projektmanagement GmbH, Knut Rebholz, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on June 14. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on Sept. 27 at the same venue. Creditors have until July 26 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Knut Rebholz Cicerostr. 22 10709 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against EUROPLAN 2000 Projektmanagement GmbH on April 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EUROPLAN 2000 Projektmanagement GmbH Preussenallee 33 14052 Berlin Germany EVIDENT GMBH: Creditors' Meeting Slated for June 11 --------------------------------------------------- The court-appointed insolvency manager for evident GmbH & Co., Dr. Mark Zeuner, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:15 a.m. on June 11. The meeting of creditors will be held at: The District Court of Schwerin Hall 7 Demmlerplatz 14 19053 Schwerin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Schwerin opened bankruptcy proceedings against evident GmbH & Co. on March 28. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Dr. Mark Zeuner Beethovenstr. 13 19053 Schwerin Germany The Debtor can be reached at: evident GmbH & Co. Dreescher Markt 4 19061 Schwerin Germany FAIR-WAY GMBH: Claims Registration Ends June 15 ----------------------------------------------- Creditors of Fair-Way GmbH have until June 15 to register their claims with court-appointed insolvency manager Dr. Hans von Gleichenstein. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Munich Meeting Room 102 Infanteriestr. 5 80097 Munich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Hans von Gleichenstein Rottmannstr. 11a 80333 Munich Tel: 089/5427300 Fax: 089/54273015 The District Court of Munich opened bankruptcy proceedings against Fair-Way GmbH on April 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fair-Way GmbH Bertholdstr. 1 80809 Munich Germany FROEHLICH BAUELEMENTE: Claims Registration Ends June 28 ------------------------------------------------------- Creditors of Froehlich Bauelemente GmbH have until June 28 to register their claims with court-appointed insolvency manager Dr. Joerg Behrends. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on July 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Oldenburg Meeting Room Second Floor Elizabeth Route 6 26135 Oldenburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joerg Behrends Scheideweg 26127 Oldenburg Germany Tel: 0441-3616220 Fax: 0441-36162229 The District Court of Oldenburg opened bankruptcy proceedings against Froehlich Bauelemente GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Froehlich Bauelemente GmbH Brombeerweg 10 26180 Rastede Germany GERHARD VORLAUFER: Creditors' Meeting Slated for May 10 ------------------------------------------------------- The court-appointed insolvency manager for Gerhard Vorlaufer GmbH, Klaus-Dieter Gebhardt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on May 10. The meeting of creditors and other interested parties will be held at: The District Court of Crailsheim Hall 113 First Floor Schillerstrasse 1 74564 Crailsheim Germany The Court will also verify the claims set out in the insolvency manager's report at 10:30 a.m. on June 14 at the same venue. The District Court of Crailsheim opened bankruptcy proceedings against Gerhard Vorlaufer GmbH on March 30. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Klaus-Dieter Gebhardt Karlstr. 6 74564 Crailsheim Germany Tel: 07951/9493-0 Fax: 07951/9493-90 The Debtor can be reached at: Gerhard Vorlaufer GmbH Attn: Bernd Weinmann, Manager Blaufelder Str. 4 74564 Crailsheim Germany GFI GESELLSCHAFT: Claims Registration Period Ends May 25 -------------------------------------------------------- Creditors of GFI Gesellschaft fuer Finanz- und Investitionsplanung mbH have until May 25 to register their claims with court-appointed insolvency manager Gerald Bittner. Creditors and other interested parties are encouraged to attend the meeting at 1:15 p.m. on June 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Hof opened bankruptcy proceedings against GFI Gesellschaft fuer Finanz- und Investitionsplanung mbH on April 3. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Gerald Bittner Kreuzsteinstr. 41 95028 Hof Germany Tel: 09281/71550 Fax: 09281/715555 The Debtor can be reached at: GFI Gesellschaft fuer Finanz- und Investitionsplanung mbH Attn: Ernst Guggelmeier-Goldkorn, Manager Schlehenweg 18 95028 Hof Germany GOALPLANET GMBH: Claims Registration Ends May 31 ------------------------------------------------ Creditors of GoalPlanet GmbH have until May 31 to register their claims with court-appointed insolvency manager Marc Schmidt- Thieme. Creditors and other interested parties are encouraged to attend the meeting at 10:30 p.m. on July 12, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.312 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Marc Schmidt-Thieme Soldnerstr. 2 68219 Mannheim Germany Tel: 0621/87708-0 Fax: 0621/8770820 The District Court of Darmstadt opened bankruptcy proceedings against GoalPlanet GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GoalPlanet GmbH Gaussstrasse 39 68623 Lampertheim Germany KLOECKNER PENTAPLAST: Moody's Reviews Ratings Over Possible Sale ---------------------------------------------------------------- Moody's Investors Service placed the Ba3 Corporate Family Rating for Kloeckner Pentaplast S.A., the Ba2 ratings for the bank debt and the EUR180 million Senior Notes (rated B2) under review for possible downgrade following the shareholders' (Cinven Ltd. and CCMP Capital Advisors, LLC) decision to sell the group to investment funds managed by Blackstone Group for a total consideration of EUR1.3 billion. The transaction is subject to customary regulatory approvals. The review will assess the strategic direction and capital structure that the new owners may pursue with KP. Moody's would confirm the ratings only should Blackstone decide to maintain the company's current capital structure and debt levels as well as its deleveraging strategy. The rating agency notes that certain clauses in the notes and loan documentation entitle the holders to have their investment redeemed above par upon a change of control event. The company has confirmed its intention to redeem the notes in accordance with the terms and conditions. The current Ba3 CFR takes into account: (i) KP's large size and market leadership for flexible and rigid plastic packaging in Western Europe and the US; (ii) its growing exposure to high growth emerging markets in Asia, South America and Eastern Europe; and (iii) its relatively stable operating margins compared to industry peers. The rating also reflects KP's commodity-like product features leading to continuous pressure on margins for certain products, as well as the company's exposure to volatile PVC and PET resin costs. Headquartered in Montabaur, Germany, The Kloeckner Pentaplast Group -- http://www.kpfilms.com/en/index.asp-- and with legal domicile in Luxembourg, is a global leader in the manufacturing of rigid plastics for the pharmaceuticals, food, medical, electronics, and other packaging industries. The company generated nearly EUR1.2 billion of sales during FY 2006 (ending September), 60% of which came from Europe (including a small portion from Asia) and 40% from the US, Canada and Latin America. KNOEPFLE VERLAGSAUSLIEFERUNGS: Claims Registration Ends June 14 --------------------------------------------------------------- Creditors of Knoepfle Verlagsauslieferungs GmbH have until June 14 to register their claims with court-appointed insolvency manager Michael Pluta. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on July 5, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kempten Hall 157/I Residenzplatz 4-6 87435 Kempten Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Pluta Karlstr. 31 - 33 89073 Ulm Germany Tel: 0731/96880-0 Fax: 0731/96880-50 The District Court of Kempten opened bankruptcy proceedings against Knoepfle Verlagsauslieferungs GmbH on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Knoepfle Verlagsauslieferungs GmbH Albert-Einstein-Strasse 5 87437 Kempten Germany KUECHENHAUS TOTAL: Creditors' Meeting Slated for June 25 -------------------------------------------------------- The court-appointed insolvency manager for Kuechenhaus Total GmbH, Christian Koehler-Ma, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:35 a.m. on June 25. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 on Sept. 3 at the same venue. Creditors have until July 4 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Christian Koehler-Ma Kurfuerstendamm 212 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Kuechenhaus Total GmbH on April 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kuechenhaus Total GmbH Lise-Meitner-Str. 45 10589 Berlin Germany LINDNER ELEKTRONIK: Claims Registration Period Ends May 9 --------------------------------------------------------- Creditors of Lindner Elektronik GmbH have until May 9 to register their claims with court-appointed insolvency manager Joern Weitzmann. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on May 30, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Lueneburg Hall 302 Ochsenmarket 3 21335 Lueneburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Lueneburg opened bankruptcy proceedings against Lindner Elektronik GmbH on April 2. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Joern Weitzmann c/o Buero Kilger Arnold-Heise-Str. 9 20249 Hamburg Germany Tel: 040/4607970 Fax: 040/46079725 The Debtor can be reached at: Lindner Elektronik GmbH Attn: Juergen Lindner, Manager Zum Hafen 4a 21423 Winsen-Toennhausen Germany LOHFINK ENTSORGUNG: Creditors' Meeting Slated for May 30 -------------------------------------------------------- The court-appointed insolvency manager for Lohfink Entsorgung- und Logistik GmbH, Hanns Poellmann, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 1:40 p.m. on May 30. The meeting of creditors will be held at: The District Court of Gera Hall 310 Rudolf-Diener-Str. 1 Gera Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Gera opened bankruptcy proceedings against Lohfink Entsorgung- und Logistik GmbH on April 3. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Hanns Poellmann Blankenburger Str. 3 07318 Saalfeld Germany The Debtor can be reached at: Lohfink Entsorgung- und Logistik GmbH Attn: Werner Lohfink, Manager Huettenstrasse 19 - 21 07318 Saalfeld Germany MICRONOMICS VERWALTUNGS: Creditors' Meeting Slated for June 11 -------------------------------------------------------------- The court-appointed insolvency manager for micronomics Verwaltungs GmbH, Dr. J�rgen Spliedt, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:15 a.m. on June 11. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m. on Sept. 10 at the same venue. Creditors have until July 17 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Juergen Spliedt Uhlandstr. 165/166 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against micronomics Verwaltungs GmbH on April 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: micronomics Verwaltungs GmbH Friedrichstrasse 231 10969 Berlin Germany MOEBEL-REHWALD GMBH: Claims Registration Ends June 28 ----------------------------------------------------- Creditors of Moebel-Rehwald GmbH have until June 28 to register their claims with court-appointed insolvency manager Georg Henningsmeier. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cuxhaven Hall 112 Old Building Deichstr. 12 a 27472 Cuxhaven Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Georg Henningsmeier Osdorfer Landstr. 230 22549 Hamburg Germany Tel: 040 8078810 Fax: 040 807881-20 The District Court of Cuxhaven opened bankruptcy proceedings against Moebel-Rehwald GmbH on April 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Moebel-Rehwald GmbH Lange Str. 26 27478 Cuxhaven Germany Attn: Gerd Grycan, Manager Kanalstr. 18 27478 Cuxhaven Germany MONTAGESERVICE NORD: Creditors' Meeting Slated for June 1 --------------------------------------------------------- Creditors of Montageservice Nord GmbH have until May 8 to register their claims with court-appointed insolvency manager Stephan Muenzel. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on June 1, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Norderstedt Hall B Rathausallee 80 22846 Norderstedt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Norderstedt opened bankruptcy proceedings against Montageservice Nord GmbH on April 4. Consequently, all pending proceedings against the company have been automatically stayed. The insolvency manager can be reached at: Stephan Muenzel Bachstrasse 85a 22083 Hamburg Germany The Debtor can be reached at: Montageservice Nord GmbH Wilstedter Strasse 1a 24558 Wakendorf Germany Attn: Herrn Peter Sveceny, Manager Meisenweg 8 23845 Itzstedt Germany NORIS DRUCKVERWALTUNG: Claims Registration Period Ends May 14 ------------------------------------------------------------- Creditors of Noris Druckverwaltung GmbH have until May 14 to register their claims with court-appointed insolvency manager Mechthild Bruche. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on June 14, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Nuremberg Meeting Hall 152/I Flaschenhofstr. 35 Nuremberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Mechthild Bruche Stahlstr. 17 90411 Nuremberg Germany Tel: 0911/951285-0 Fax: 0911/951285-10 The District Court of Nuremberg opened bankruptcy proceedings against Noris Druckverwaltung GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Noris Druckverwaltung GmbH Holzschuherstrasse 36/40 90439 Nuremberg Germany NRG ENERGY: Earns US$65 Million in 2007 First Quarter ----------------------------------------------------- NRG Energy, Inc. reported a US$65 million net income for the three months ended March 31, 2007, compared with US$26 million for the same period last year. The 2007 improvement primarily resulted from the inclusion of three months of operating results for NRG Texas, which was acquired by NRG in February 2006, increased generation and pricing in the Northeast region, and US$107 million in after-tax refinancing expenses in 2006 associated with the acquisition of NRG Texas. MtM changes, primarily associated with economic hedges on our baseload assets, unfavorably impacted net income in 2007 by US$55 million while benefiting 2006 earnings by US$44 million. Quarterly cash flow from operations of US$106 million was impacted by US$120 million of cash collateral outflows. First quarter 2006 adjusted operating cash flow of US$313 million benefited from US$230 million of collateral inflows. Operating cash flows, exclusive of collateral movements, increased by US$143 million versus the same period last year. This improvement reflects NRG Texas' contributions for the entire quarter in 2007. In addition, current year cash flow from operations benefited from US$39 million in higher contract prices that resulted from last November's hedge reset transaction. "Over the past 3-1/2 years, our continuous focus on executing a multi-faceted growth plan off a foundation of strong commercial and plant operations has brought NRG to a much stronger place financially and strategically," David Crane, NRG President and Chief Executive Officer said. " NRG's operational effectiveness and the promise of our ongoing growth initiatives have put us in the position where we can both initiate a recurring cash dividend and generate the capital to reinvest in our business through repowering NRG and other core initiatives." About NRG A Fortune 500 company, NRG Energy, Inc. (NYSE: NRG) -- http://www.nrgenergy.com/-- owns and operates a diverse portfolio of powergenerating facilities, primarily in Texas and the Northeast, South Central and West regions of the United States. Its operations include baseload, intermediate, peaking, and cogeneration and thermal energy production facilities. NRG also has ownership interests in generating facilities in Australia, Germany and Brazil. NRG ENERGY: Moody's Holds Corporate Family Rating at Ba3 -------------------------------------------------------- Moody's Investors Service affirmed the ratings of NRG Energy, Inc., including its Corporate Family Rating at Ba3, the Probability of Default Rating at Ba3, the senior unsecured debt at B1, and its Speculative Grade Liquidity Rating of SGL-2, following the company's announcement to return more capital to shareholders in the form of existing and future share repurchases and to begin paying a common dividend during the first quarter of 2008. Moody's also affirmed NRG's Ba1 bank loan rating for the company's secured revolving credit and term loan facility, which is being amended and re-priced. The rating outlook for NRG remains negative. Additionally, Moody's has assigned a (P)B2 rating to a planned US$1 billion delayed draw secured term loan at NRG Holdings, Inc., a new holding company being formed, which will own the common stock of NRG. "While the rating affirmation incorporates our expectation that the company will be able to generate meaningful free cash for the next few years, the company's announcement concerning capital allocation indicates a continuing shift towards shareholder rewards, at a time when future capital requirements for the sector and the company have increased and are expected to remain so for the foreseeable future, " said A.J. Sabatelle, Vice President -- Senior Credit Officer of Moody's. The rating affirmation reflects relatively stable cash flows expected at NRG given the company's competitive position in several key markets and the degree of forward hedges in place for the next five years. NRG's cash flow (CFO pre-W/C) to total adjusted debt was 13.7% during 2006 which should improve further during 2007 given a full year benefit of higher cash flows from the hedge reset program executed by the company in November 2006. NRG's expects to generate nearly US$900 million of free cash flow during 2007. Given the degree of forward hedges entered into by the company and the prospects for continuing relatively high natural gas prices, Moody's expects that under most reasonable scenarios, the company's cash flow (CFO pre-W/C) to total adjusted debt is expected to achieve at least a 13% level over the next several years, which remains consistent with the existing Ba3 Corporate Family Rating. The rating affirmation also considers several initiatives announced by the company designed to return more capital to shareholders. These initiatives include the commencement of an annual common dividend of US$0.50 per share, paid quarterly beginning in the first quarter 2008, and the continuation of share repurchase programs after the current authorized share buyback program is completed. To help facilitate these shareholder friendly objectives, NRG's intends to amend and restate its existing revolving credit and term loan facility and to form NRG Holdings, which together with a delayed draw US$1 billion term loan will substantially increase capacity under the restricted payments basket in the company's existing indentures. Under the planned refinancing, NRG will become a wholly owned operating subsidiary of NRG Holdings. NRG Holdings will borrow up to US$1 billion under a term loan and will downstream the net proceeds to NRG as an equity contribution. NRG will use the net proceeds for the prepayment of a portion of its existing Term B loan. Upon completion, the restricted payments capacity under NRG's bond indentures will increase by an amount equal to the equity contribution from NRG Holdings to NRG, thereby allowing NRG to return more capital to shareholders in the future. Upon the formation of NRG Holdings, existing NRG common and preferred shares will be exchanged for identical NRG Holdings level securities. The NRG Holdings term loan is being syndicating as a new US$1 billion delayed draw term loan to NRG's existing secured revolver and term loan lenders as part of the amendment and re- pricing request. Current NRG lenders will be asked to simultaneously commit to a strip of new NRG Holdings term loans, which will be funded once the holding company is formed. Since certain regulatory approvals are required in order for NRG Holdings to be formed, NRG does not expect the formation to occur until the fourth quarter 2007. The (P) B2 rating assigned to NRG Holdings' secured term loan incorporates Moody's current understanding of the proposed refinancing, and reflects the structural subordination of this creditor class to senior unsecured and senior secured creditors at NRG. NRG's negative rating outlook reflects, in Moody's opinion, a trend by management to steadily implement shareholder friendly initiatives within the past year. Since August 2006, NRG has amended financing documents and has executed financings to return more capital to the shareholders either by increasing the restricted payments basket or by structuring financings that allow capital to flow to shareholders outside of the restricted payments basket. Additionally, the negative outlook incorporates the higher permanent debt levels at NRG incurred in November 2006 as part of the hedge reset. While cash margins, generation values, and hedging opportunities for independent power companies have all increased within the recent past, the capital needs of companies in the sector, including NRG, have also continued to move in an upward direction, particularly for future environmental related capital expenditures. With a higher permanent level of debt embedded in the capital structure, an increasing shareholder focus by management, and the cost of future capital investment programs increasing, NRG's credit quality could weaken, particularly if the company's future margins compress due to lower natural gas prices, lower market heat rates, or successful efforts key stakeholders to re- regulate segments of the sector. In light of the negative rating outlook as well as the company's capital investment program, share repurchase plan and other related initiatives, limited near-term prospects exist for the rating to be upgraded; however, the rating outlook could stabilize if the company makes meaningful progress towards using free cash flow to permanently reduce debt over the next several years, and/or if the company finances its anticipated large capital investment program in a relatively conservative manner resulting in a adjusted cash flow (CFO pre-W/C) to total adjusted debt rising to the mid-teens level on a sustainable basis. Moody's understands that the company's secured credit facilities will continue to require lenders to accept for prepayment 50% of any excess cash flow offered by NRG, which should help to facilitate debt repayment. The rating could be downgraded if the degree of shareholder initiatives further accelerates over the next twelve to eighteen months without meaningful progress towards reducing consolidated debt or if the company chooses to finance its capital investment program with higher than anticipated levels of debt. Additionally, should margins compress across NRG's existing generation fleet or should additional leverage be incurred to finance shareholder rewards causing adjusted cash flow (CFO pre- W/C) to total adjusted debt to fall below 10% for an extended period, the rating could be downgraded. Ratings affirmed: NRG Energy, Inc. * Corporate family rating at Ba3; * Probability of default rating at Ba3; * Speculative Grade Liquidity Rating of SGL-2; Ratings affirmed/LGD assessments revised; NRG Energy, Inc. * Senior unsecured notes at B1 (LGD 5, 78% from LGD5, 77%); * Shelf registration for senior unsecured debt at (P) B1 (LGD 5, 78% from LGD5, 77%); Ratings and assessments affirmed: NRG Energy, Inc. * Senior secured revolving credit and term loan facility at Ba1 (LGD2, 22%) * Preferred stock at B2, LGD 6, 98%; * Shelf registration for senior secured debt at (P) Ba1 (LGD 2, 22%) * Shelf registration for subordinated debt at (P)B2, LGD 6, 97%; * Shelf registration for preferred stock at (P)B2, LGD 6, 98%; Rating assignment: NRG Holdings, Inc. * Senior secured term loan at (P)B2 Headquartered in Princeton, New Jersey, NRG Energy, Inc. owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia, Brazil, and Germany. NRG ENERGY: S&P Lifts Rating on US$4.7 Billion Unsec. Bonds to B ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on NRG Energy Inc.'s US$4.7 billion unsecured bonds to 'B' from 'B-' and assigned its 'B-' rating to the proposed US$1 billion delayed-draw term loan B at NRG Holdings Inc., a newly created holding company that would own 100% of NRG's equity. In addition, Standard & Poor's affirmed the 'B+' corporate credit rating on NRG and affirmed the 'BB-' rating on NRG's US$3.148 billion term loan B; the 'CCC+' rating on the company's preferred stock, and the 'B-2' short-term rating. The outlook on all ratings is stable. The proceeds of the term loan B can only be used to pay down the existing term loan B debt at NRG, creating room for the planned dividends under the restricted payments basket of the unsecured bond indenture. "The raised rating on NRG's senior unsecured bonds is a result of our asset coverage test," said Standard & Poor's credit analyst Swami Venkataraman. "The term loan B at NHI is rated 'B-', reflecting its subordination to more than US$8.6 billion of debt at NRG." These rating actions follow NRG's announcement that it will create a new holding company to facilitate the payment of a common dividend of US$100 million-US$150 million per year starting in the first quarter of 2008. NHI will borrow up to US$1 billion from the term B market and pay the net proceeds to NRG as an equity contribution. NRG will use the net proceeds to prepay portion of its existing term B loan, resulting in no change to the company's consolidated debt levels. On completion, the restricted payments capacity under NRG's unsecured bond indentures will increase by an amount equal to the equity contribution from the holding company to NRG. The recovery rating of '5' on NHI's debt reflects its negligible recovery prospects since lenders are secured only by the equity interest in NRG and are effectively subordinated to all debt at NRG, including the US$4.7 billion unsecured bonds. If the funding occurs, Standard & Poor's expect to raise the rating on the remaining US$2.148 billion NRG term loan B to 'BB' from 'BB- ', reflecting the greater overcollateralization of the term loan by NRG's assets and related stronger recovery in the event of a default. NRG is primarily engaged in the ownership, development, construction and operation of power generation facilities, the trading of energy, fuel, capacity and related products in the United States and internationally. As of Dec. 31, 2006, NRG owned 24,175 MW of generating capacity and had about US$8.7 billion in debt. NRG ENERGY: Pursues Comprehensive Capital Allocation Plan --------------------------------------------------------- NRG Energy, Inc., is pursuing a refinancing plan along with amendments to its Senior Credit facility to support and facilitate its capital allocation strategy. The move came as a result of the successful implementation of its hedging strategy, which has created a strong and stable earnings and cash flow profile for the company. Terms of the Refinancing Plan Under the planned refinancing, NRG will become a wholly owned operating company subsidiary of a newly created holding company. Holdco will borrow up to US$1 billion from the Term B market and pay the net proceeds to Opco as an equity contribution. Opco will use the net proceeds for the prepayment of a portion of its existing Term B loan resulting in no change to the Company's consolidated debt levels. Upon completion, the restricted payments capacity under the Company's high yield bond indentures will increase by an amount equal to the equity contribution from Holdco to Opco. Planned amendments to the Senior Credit Facility include: -- a reduction in pricing; -- a US$150 million per year carve out enabling a recurring common share cash dividend; -- additional flexibility to invest in RepoweringNRG projects; and -- a commitment from the lenders to fund the Holdco loan. The Company has obtained commitments for the Holdco financing from a number of financial institutions. Stock Split Further, in order to provide additional liquidity to the Company's common stock, the Company's Board of Directors has approved a 2-for-1 stock split effected in the form of a stock dividend payable on May 31. The stock split will entitle each stockholder of record at the close of business on May 22, to receive one additional share for every common share held. The number of common shares outstanding upon completion of the stock split will be approximately 242 million shares, excluding the impact of any additional share repurchases which may be completed by the Company. Contingent upon the successful implementation of the Holdco financing, which requires certain regulatory approvals, and sufficient cash resources the Company plans to commence an annual common share cash dividend of US$0.50 per share, paid quarterly beginning in the first quarter 2008. Share Repurchase Program In addition to the cash dividend, the Company plans to continue with common share repurchase programs from time to time even after the completion of the current share buyback. In light of the Company's projected earnings and cash flow profile, the Company plans to target an annual return of capital to shareholders, consisting of both fixed dividend and variable share repurchase components, of approximately 3% per annum. In connection with the Company's previously announced share repurchase program, US$103 million of common share repurchases were completed during the first quarter 2007 at an average price of US$68.74 per share, leaving US$165 million of authorized repurchases to be completed. The Company expects to complete the remaining share repurchases in 2007. "The Capital Allocation Plan announced reflects steadfast confidence in our business model and our unwavering commitment to capital discipline," commented Robert C. Flexon, NRG's Executive Vice President and Chief Financial Officer. "All elements of our capital allocation philosophy -- reinvestment, debt management, returning capital to shareholders, and RepoweringNRG -- are covered by this plan." About the Company Headquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE:NRG) -- http://www.nrgenergy.com/-- owns and operates power generating facilities, primarily in Texas and the northeast, south central and western regions of the United States. NRG also owns generating facilities in Australia, Brazil, and Germany. NRG ENERGY: Fitch Says Common Dividend Plan Won't Affect Ratings ---------------------------------------------------------------- According to Fitch Ratings, NRG Energy Inc.'s (NRG; Issuer Default Rating [IDR] 'B', with a Stable Rating Outlook) announcement that it plans to pay a common dividend beginning 2008 through the creation of a holding company structure does not immediately affect the company's ratings or rating Outlook. As proposed, NRG would create a parent holding company that would issue up to US$1 billion in debt, the proceeds from which would be used to pay down the existing Term Loan B at the operating company level. On a consolidated basis, NRG's total debt outstanding is expected to remain unchanged at approximately US$8.8 billion. The new holding company debt would be structurally subordinated to the existing operating company debt. By reducing debt at the operating company level, NRG believes it will have sufficient room under the restricted payments basket to pay a common dividend of approximately US$150 million annually. Fitch is in the process of reviewing NRG's ratings, including an updated recovery analysis based on recent forward commodity prices, which may result in more robust valuations for NRG's merchant generation portfolio. In Fitch's view, the reduction of the Term Loan B could improve the ratings of the unsecured bonds. The current ratings of NRG are supported by its hedged base-load capacity and relatively diverse generation portfolio. As described in Fitch's 'U.S. Power and Gas 2007 Outlook', the outlook for competitive generation has improved, and this should benefit NRG. PLAN-UND PRUEF: Claims Registration Period Ends June 5 ------------------------------------------------------ Creditors of Plan-und Pruef-GmbH have until June 5 to register their claims with court-appointed insolvency manager Peter Depre. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Karlsruhe Hall IV First Floor Schlossplatz 23 76131 Karlsruhe Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Depre O 4, 13-16 68161 Mannheim Germany Tel: (06 21) 12 07 80 The District Court of Karlsruhe opened bankruptcy proceedings against Plan-und Pruef-GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Plan-und Pruef-GmbH Attn: Betram Schroeder, Manager Werner-von-Siemens-Str. 16 76694 Forst Germany RATHAUSHOTEL OBERWIESENTHAL: Claims Registration Ends June 14 ------------------------------------------------------------- Creditors of Rathaushotel Oberwiesenthal GmbH & Co. KG have until June 14 to register their claims with court-appointed insolvency manager Bruno M. Kuebler. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Chemnitz Hall 28 Fuerstenstrasse 21 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Bruno M. Kuebler Nieritzstrasse 14 01097 Dresden Germany Tel: (03 51) 31 50 50 Telefax: (03 51) 31 50 55 55 E-mail: dresden@kuebler-gbr.de The District Court of Chemnitz opened bankruptcy proceedings against Rathaushotel Oberwiesenthal GmbH & Co. KG on April 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rathaushotel Oberwiesenthal GmbH & Co. KG Markt 3 09484 Kurort Oberwiesenthal Germany Attn: Uwe Rohrschneider, Manager Jenaer Strasse 6 10717 Berlin Germany RESTAURATION UND HANDEL: Claims Registration Period Ends June 1 --------------------------------------------------------------- Creditors of Restauration und Handel Timmermann GmbH & Co. KG have until June 1 to register their claims with court-appointed insolvency manager Tjark Thies. Creditors and other interested parties are encouraged to attend the meeting at 11:05 a.m. on July 2, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Tjark Thies Domstrasse 15 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Restauration und Handel Timmermann GmbH & Co. KG on April 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Restauration und Handel Timmermann GmbH & Co. KG Attn: Joerg Timmermann, Manager Haselbusch 12 22549 Hamburg Germany SCHILDERWERK LEIPZIG: Claims Registration Period Ends June 14 ------------------------------------------------------------- Creditors of SL Schilderwerk Leipzig GmbH have until June 14 to register their claims with court-appointed insolvency manager Michael Schoor. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Leipzig Hall 056 Ground Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Schoor Schorlemmerstrasse 2 04155 Leipzig Germany Tel: 0341/4903650 Fax: 0341/4903699 E-mail: leipzig@pluta.net. The District Court of Leipzig opened bankruptcy proceedings against SL Schilderwerk Leipzig GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SL Schilderwerk Leipzig GmbH Attn: Peter Naumann and Karl-Heinz Neugebauer, Managers Knorrstr. 4 04319 Leipzig Germany TROLLEX TROCKENBAUSERVICE: Creditors' Meeting June 26 ----------------------------------------------------- The court-appointed insolvency manager for Trollex Trockenbauservice GmbH, Hartwig Albers, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:05 a.m. on June 26. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Second Stock Hall 218 Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:25 a.m. on Sept. 28 at the same venue. Creditors have until July 26 t to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Hartwig Albers Luetzowstr. 100 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Trollex Trockenbauservice GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Trollex Trockenbauservice GmbH Lietzenburger Str. 54 10719 Berlin Germany TRW AUTOMOTIVE: Credit Suisse Keeps Outperform Rating on Shares --------------------------------------------------------------- Credit Suisse analysts have maintained their "outperform" rating on TRW Automotive Holdings Corp.'s shares, Newratings.com reports. Newratings.com relates that the target price for TRW Automotive's shares was increased to US$40 from US$35. The analysts said in a research note published on May 3 that TRW Automotive's first quarter 2007 results were strong, with earnings per share, excluding debt retirement expenses, ahead of the estimates and the consensus. The analysts told Newratings.com that the results at TRW Automotive' under-performing Automotive Components division improved in the first quarter 2007. The earnings per share estimate for 2007 was increased to US$2.37 from US$1.94, while the estimate for 2008 was raised to US$2.85 from US$2.65, to show lower interest expenses and robust underlying profit performance, Newratings.com reports. Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries including Brazil, China, Germany, Italy, among others. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. * * * Fitch assigned a 'BB' on TRW Automotive Holdings Corp.'s LT Issuer Default rating and 'BB-' on its Unsecured Debt rating. Fitch said the outlook is stable. VOLMER INNOVATIVE: Claims Registration Period Ends June 6 --------------------------------------------------------- Creditors of Volmer Innovative Fenstersysteme Gmbh have until June 6 to register their claims with court-appointed insolvency manager Hans - Peter Burghardt. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 28, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Paderborn Meeting Hall 216 Second Floor Bogen 2-4 33098 Paderborn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hans - Peter Burghardt Bunsenstr. 3 32052 Herford Germany Tel: 05221/6930731 Fax: 05221/ 6930691 The District Court of Paderborn opened bankruptcy proceedings against Volmer Innovative Fenstersysteme Gmbh on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Volmer Innovative Fenstersysteme Gmbh Attn: Thomas Vollmer, Manager Drostestr. 4 33034 Brakel Germany WIS INDUSTRIESERVICE: Claims Registration Period Ends June 10 ------------------------------------------------------------- Creditors of WIS Industrieservice GmbH have until June 10 to register their claims with court-appointed insolvency manager Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on July 16, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Manfred Gottschalk Kirchender Dorfweg 14 58313 Herdecke Germany The District Court of Bochum opened bankruptcy proceedings against WIS Industrieservice GmbH on April 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WIS Industrieservice GmbH Friedrich-Ebert-Str. 95 58454 Witten Germany Attn: Horst Haushalter, Manager Harkortring 30 58453 Witten Germany ============= H U N G A R Y ============= AES CORP: Unit Faces Nasdaq Delisting Due to Late 10-K Filing ------------------------------------------------------------- The AES Trust VII, a subsidiary of the AES Corporation, received a written notification from The Nasdaq Stock Market on May 1, 2007, stating that the Trust VII's Trust Convertible Preferred Securities (OTCCB symbol: AESRO) will be delisted from the OTC Bulletin Board effective May 3, 2007, due to non- compliance with NASD Rule 6530 as a result of the company's failure to timely file its annual report on Form 10-K for the year ended Dec. 31, 2006. The decision to delist the Convertible Preferred Securities was made following a telephonic hearing by the company before the Hearings Department of the Nasdaq Stock Market on April 27, 2007. The company has not determined whether it will cause a Form 211 to be filed to list the Convertible Preferred Securities on the OTC Bulletin Board after it has filed its annual report on Form 10-K with the U.S. Securities Exchange Commission. AES Corporation -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. AES has been in Eastern Europe for nearly ten years, since it acquired three power plants in Hungary in 1996. Currently, AES has two distribution companies in Ukraine, which serve 1.2 million customers and generation plants in the Czech Republic and Hungary. AES is also the leading company in biomass conversion in Hungary, generating 37% of the nation's total renewable generation in 2004. * * * Fitch affirmed The AES Corporation's Issuer Default Rating at 'B+'. Fitch also affirmed and withdrew the ratings for the company's junior convertible debt. Fitch said the rating outlook for all remaining instruments is stable. In March, Standard & Poor's Ratings Services raised its corporate credit rating on diversified energy company The AES Corp. to 'BB-' from 'B+'. S&P said the outlook is stable. Moody's affirmed the ratings of The AES Corporation, including its Ba3 Corporate Family Rating and the B1 rating on its senior unsecured debt. Moody's said the rating outlook remains stable. ============= I R E L A N D ============= DEKANIA EUROPE: Fitch Puts BB- Ratings on EUR4 Mln Class F Notes ---------------------------------------------------------------- Fitch assigned Dekania Europe CDO III P.L.C.'s upcoming issue of EUR275.5 million floating-rate notes due 2038 expected ratings. -- EUR180 million Class A1: 'AAA' -- EUR28 million Class A2: 'AAA' -- EUR24 million Class B: 'AA-' -- EUR19 million Class C: 'A' -- EUR12.5 million Class D: 'BBB' -- EUR8 million Class E: 'BBB-' -- EUR4 million Class F: 'BB-' The transaction is a securitization of predominantly subordinated debt instruments issued by European insurance companies and banks. The final ratings are contingent on the receipt of final documents conforming to information already received. The expected ratings of the Class A1 and A2 notes address the ultimate repayment of principal at maturity and the timely payment of interest when due, according to the terms of the notes. For the Class B, C, D, E and F notes the expected ratings address the ultimate payment of principal and interest, including deferred interest, at maturity. The ratings are based on the quality and diversity of the portfolio of assets selected by the collateral manager, Cohen & Company Financial Limited, subject to the guidelines outlined in the collateral management agreement. The ratings are also based on the credit enhancement provided to the various Classes of notes in the form of subordination, structural protection and excess spread. Credit enhancement in the form of subordination, for the Class A1 notes will total 40%, of which 9.33% will be provided by the A2 notes, 8% by the B notes, 6.33% by the C notes, 4.17% by the D notes, 2.67% by the E notes, 1.33% by the F notes and 8.17% by the unrated subordinated Class of notes. Dekania Europe CDO III P.L.C. is a limited liability company incorporated under the laws of Ireland. At the closing date, the issuer is expected to have purchased approximately 60% of the target portfolio; the remainder will be purchased over the following 365 days. RASPADSKAYA SECURITY: Fitch Rates Proposed Notes Issue at B+/RR4 ---------------------------------------------------------------- Fitch Ratings assigned Russia-based OJSC Raspadskaya an Issuer Default 'B+' rating and a Short-term 'B' rating. The Outlook on the Issuer Default rating is Stable. Fitch has also assigned Raspadskaya Securities Limited's proposed issue of US$200 million to US$250 million loan participation notes expected senior unsecured 'B+' and Recovery 'RR4' ratings. The final ratings on the notes are contingent on the receipt of final documentation conforming to information already received and further details regarding the amount and tenor. The ratings reflect Raspadskaya's position as the second largest coking coal producer in Russia, strong financial profile as well as low-cost advantages. The company has the highest profitability among Russian and international metals and mining peers rated by Fitch with a FY06 EBITDAR margin of 55% on a pro- forma basis. Furthermore, Raspadskaya stands out among other coking coal producers based on its low cash costs of production, underpinned by its modernization program and newly launched preparation plant. Raspadskaya also had a track record of a conservative financial policy before debt-funded acquisitions in 2006 took its leverage to 1.4x, up from 0.2x in 2005. Although cash flow generation is expected to be sufficient to facilitate quick de-leveraging, Fitch notes the company's current dependence on a short-term US$300 million bridge loan, which expires in June. The ratings also factor in Raspadskaya's modest diversification across products, geography of sales and customers. Its focus on one product increases the company's exposure to one commodity cycle whereas its focus on the domestic market in conjunction with a concentrated customer base could amplify the company's vulnerability to the industry cyclicality. Furthermore, Fitch notes Raspadskaya's limited scale of operations, which could restrain operational and financial flexibility, particularly in an industry downturn. Fitch also notes that Raspadskaya is engaged in large related-party transactions (39% of FY06 EBITDAR), the largest portion of which is attributed to sales to steel maker Evraz, one of the main shareholders of the company. Although Evraz and Raspadskaya have a successful long-term relationship, any shift in Evraz's strategy towards other Russian coking coal producers may significantly affect the operations of Raspadskaya. Raspadskaya SL, a special purpose vehicle, is a public limited liability company incorporated in Ireland. The notes are limited recourse obligations of the issuer. While the notes are referred to as "secured", such security is established to ensure a link to the ultimate borrower Raspadskaya by assigning certain rights under a loan agreement between the SPV and Raspadskaya. The purpose of Raspadskaya SL is to issue the notes and lend the proceeds under a loan agreement to Raspadskaya. The latter will use the proceeds to refinance existing short-term US$300 million bridge loan. The loan agreement is governed by English laws. Covenants in the loan agreement include, among others, an equal ranking of the loan with present or future unsecured creditors of Raspadskaya and a negative pledge. Raspadskaya also has a net leverage ceiling of 3x. With FY06 net debt/EBITDA ratio of 1.4x, the company has some headroom under the above-mentioned covenant. Following the bond issue, the company also plans to issue a syndicated loan of about US$100 million to US$150 million. ========= I T A L Y ========= CORDUSIO RMBS: Fitch Rates EUR19.5 Million Class E Notes at BB -------------------------------------------------------------- Fitch Ratings assigned expected ratings to Cordusio RMBS Securitisation S.r.l. - Series 2007's mortgage-backed floating- rate notes: -- EUR703.5 million Class A1: 'AAA' -- EUR2.23 billion Class A2: 'AAA' -- EUR738.6 million Class A3: 'AAA' -- EUR71.1 million Class B: 'AA' -- EUR43.8 million Class C: 'A' -- EUR102 million Class D: 'BBB' -- EUR19.5 million Class E: 'BB' The final ratings are contingent upon the receipt of final documents conforming to information already received. This transaction is the third residential mortgage-backed transaction to be originated by UniCredit Banca S.p.A. and the fourth from the Unicredito Italiano Group. UCB is 100%-owned by UniCredito Italiano S.p.A and is the retail arm of the UCI Group. It offers a wide range of investment, personal banking and financing products, mainly to private individuals (63% of financing activity as of December 2006, according to UCB) and small and medium-sized enterprises (31%). The expected ratings are based on the quality of the loan collateral, UCB's loan underwriting processes and servicing capabilities, available credit enhancement and the financial and legal structure of the transaction. On the occurrence of a Class E, Class D, Class C or Class B trigger event, no interest will be paid on these notes until the notes ranking in priority have been repaid in full, while all the available excess spread becomes part of the principal available funds upon breach of the junior class trigger. The expected ratings address the likelihood that investors will receive timely payments of interest and repayment of principal at final maturity in 2040. At closing, credit enhancement for the Class A notes will total 6.26%, to be provided by the subordination of the Class B (1.82%), Class C (1.12%), Class D (2.61%), Class E (0.5%) and unrated junior (Class F; 0.05%) notes, as well as a fully funded cash reserve equal to 0.16% of the initial portfolio balance. In contrast to the other Cordusio transactions, the cash reserve of Cordusio RMBS 4 will not amortize. As of 31 March 2007, the portfolio consisted of 40,898 performing loans secured on residential properties originated between 2001 and 2005 and with a total outstanding balance of approximately EUR3.91 billion. Some 66.3% of the portfolio by outstanding principal balance consists of loans granted to borrowers in northern Italy, while borrowers in the central and southern regions account for 22.2% and 11.6%, respectively. =================== K A Z A K H S T A N =================== ALMA-ATA URAL: Creditors Must File Claims by June 8 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Alma-Ata Ural Az Autoservice insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office 427 Maulenov Str. 92 Almaty Kazakhstan Tel: 8 (3272) 67-63-55 8 701 733 36-24 EVROPEISKAYA PODSHIPNIKOVAYA: Creditors' Claims Due June 8 ---------------------------------------------------------- Representation Of OJSC European Bearing Corporation Evropeiskaya Podshipnikovaya Korporatsiya has declared insolvency. Creditors have until June 8 to submit written proofs of claim to: OJSC European Bearing Corporation Evropeiskaya Podshipnikovaya Korporatsiya Stepnogorsk Akmola Kazakshtan HALYK BANK: Fitch Assigns BB+ Ratings to US$700 Million Loan ------------------------------------------------------------ Fitch Ratings assigned Kazakhstan-based Halyk Bank's US$700 million 7.25% eurobond due May 2017 a final Long-term 'BB+' rating. Halyk is rated Foreign Currency Issuer Default 'BB+' with a Positive Outlook, Local Currency Issuer Default 'BBB-' with a Stable Outlook, Short-term Foreign Currency 'B', Short-term Local Currency 'F3', Individual 'C/D', and Support '3'. Halyk was the fifth largest bank in Kazakhstan, holding 10% of the system's assets at end-Q107. The bank operates the largest branch network in the country, reflecting its roots as the former state savings bank, and also acts as a non-exclusive pension and social security payment and settlement agent. Following the December 2006 IPO, institutional and individual investors now hold a 29% stake in the bank. Almex Group, beneficially owned by the daughter and son-in-law of President Nazarbayev, retains a 64% stake. INVEST PLUS: Proof of Claim Deadline Slated for June 13 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Capital Stroy Invest Plus insolvent. Creditors have until June 13 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan NEWPROMSERVICE LLP: Claims Registration Ends June 8 --------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region has declared LLP Newpromservice insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Mashinostroiteley Str. 6-63 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 55-02-78 Fax: 8 (3232) 22-01-00 SOIUZ VOSTOK: Claims Filing Period Ends June 8 ---------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region has declared LLP Soiuz Vostok insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Mashinostroiteley Str. 6-63 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 55-02-78 Fax: 8 (3232) 22-01-00 SP AGROMASHDETAIL: Creditors Must File Claims by June 8 ------------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Sp Agromashdetail insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office 427 Maulenov Str. 92 Almaty Kazakhstan Tel: 8 (3272) 67-63-55 8 701 733 36-24 STATUS KYZYLORDA: Creditors' Claims Due June 8 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Kyzylorda has declared LLP Status Kyzylorda insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kyzylorda Aiteke bi Str. 29 Kyzylorda Kazakshtan TRANS UNIVERSAL: Proof of Claim Deadline Slated for June 8 ---------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan Region has declared LLP Trans Universal Company insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of East Kazakhstan Ilyaev Str. 24 Shymkent East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== ADASK LLC: Insolvency Manager Sets May 11 Asset Auction ------------------------------------------------------- The temporary insolvency manager of LLC Adask will auction the company's three-room flat at 11:00 a.m. on May 11 at: Moskovskaya Str. 121-34 Bishkek Kyrgyzstan The starting price for the property is set at KGS3,805,240. Interested bidders have until May 10 to deposit guarantee payment equivalent to 10% of the starting price of the lot to: Settlement Account No. 00050007343 CJSC Demir Kyrghyz International Bank BIK 118001 or to the cashier of the enterprise. Participants must submit their bids and necessary documents at: Moskovskaya Str. 121-34 Bishkek Kyrgyzstan Tel: (0-502) 18-24-46 BAKTYM LLC: Creditors' Meeting Slated for May 11 ------------------------------------------------ Creditors of LLC Baktym will convene at 10:00 a.m. on May 11 at: Ahunbaev Str. 137-6 Bishkek Kyrgyzstan The creditors' meeting will discuss: -- the temporary insolvency manager's report on financial-economic activity; and -- the confirmation of expenses estimate. LLC Baktym has declared insolvency on April 4. Subsequently, bankruptcy proceedings were introduced at the company. Creditors must submit their proofs of claim and be registered within seven days before the meeting with the temporary insolvency manager. Proxies must have authorization to vote. The temporary insolvency manager is: Bayish Kubibayev Tel: (+996 312) 56-60-98 (0-502) 55-11-97 =================== L U X E M B O U R G =================== KLOECKNER PENTAPLAST: Moody's Reviews Ratings Over Possible Sale ---------------------------------------------------------------- Moody's Investors Service placed the Ba3 Corporate Family Rating for Kloeckner Pentaplast S.A., the Ba2 ratings for the bank debt and the EUR180 million Senior Notes (rated B2) under review for possible downgrade following the shareholders' (Cinven Ltd. and CCMP Capital Advisors, LLC) decision to sell the group to investment funds managed by Blackstone Group for a total consideration of EUR1.3 billion. The transaction is subject to customary regulatory approvals. The review will assess the strategic direction and capital structure that the new owners may pursue with KP. Moody's would confirm the ratings only should Blackstone decide to maintain the company's current capital structure and debt levels as well as its deleveraging strategy. The rating agency notes that certain clauses in the notes and loan documentation entitle the holders to have their investment redeemed above par upon a change of control event. The company has confirmed its intention to redeem the notes in accordance with the terms and conditions. The current Ba3 CFR takes into account: (i) KP's large size and market leadership for flexible and rigid plastic packaging in Western Europe and the US; (ii) its growing exposure to high growth emerging markets in Asia, South America and Eastern Europe; and (iii) its relatively stable operating margins compared to industry peers. The rating also reflects KP's commodity-like product features leading to continuous pressure on margins for certain products, as well as the company's exposure to volatile PVC and PET resin costs. Headquartered in Montabaur, Germany, The Kloeckner Pentaplast Group -- http://www.kpfilms.com/en/index.asp-- and with legal domicile in Luxembourg, is a global leader in the manufacturing of rigid plastics for the pharmaceuticals, food, medical, electronics, and other packaging industries. The company generated nearly EUR1.2 billion of sales during FY 2006 (ending September), 60% of which came from Europe (including a small portion from Asia) and 40% from the US, Canada and Latin America. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: S&P Raises Ratings to BBB- from BB+ ------------------------------------------------------ Standard & Poor's Ratings Services raised its long- and short- term corporate credit ratings on Netherlands-based food retailer Koninklijke Ahold N.V. to 'BBB-/A-3' from 'BB+/B'. The outlook is stable. At the same time, the long-term ratings on the group's unsecured bonds were raised to 'BB+' from 'BB'. The rating change follows the group's recently announced disposal of its U.S. Foodservice division for US$7.1 billion, and our expectation of a significantly enhanced financial profile by year-end 2007. "The disposal of Foodservice will have a limited impact on the group's business risk profile, but Ahold's commitment to dedicating EUR2 billion to debt reduction will substantially strengthen the financial risk profile," said Standard & Poor's credit analyst Nicolas Baudouin. "We expect, in particular, the group's ratio of adjusted funds from operations to debt to exceed 30% at year-end 2007." The ratings continue to reflect the group's satisfactory business profile, which is underpinned by the favorable characteristics of the food retail market, where the group enjoys leading positions in the Netherlands and on the U.S. East Coast. Ahold's once highly leveraged financial profile has progressively shifted from aggressive to intermediate, but ratings remain constrained by the challenging retail market trends prevailing in the U.S. "We expect FFO to debt to remain in the 25%-30% range, and Ahold to establish a track record of investment-grade-like financial measures," said Mr. Baudouin. The possibility of a further upgrade is very remote. It would necessitate a strengthening of the group's business position and profitability in the U.S. and a further enhancement of financial metrics. The major risk area remains the group's U.S. retail operations, where tough market conditions still hamper creditworthiness. Any significant downturn or the inability to reposition U.S. retail operations could have a negative bias on the ratings. LIBBEY INC: Board Declares US$0.025 Per Share Quarterly Dividend ---------------------------------------------------------------- Libbey Inc.'s Board of Directors declared the company's quarterly cash dividend of US$0.025 cents per share. The dividend will be paid on May 29, 2007, to shareholders of record as of May 16, 2007. As of April 30, 2007, Libbey had 14,396,319 shares outstanding. Based in Toledo, Ohio, Libbey Inc. -- http://www.libbey.com/ -- operates glass tableware manufacturing plants in the United States in Louisiana and Ohio, in Mexico, Portugal and the Netherlands. * * * Standard & Poor's Ratings Services assigned on May 16, 2006, its 'B' corporate credit rating to Libbey Inc. At the same time, Standard & Poor's assigned its 'B' senior unsecured debt rating to the company's proposed US$400 million of senior unsecured notes due 2014, which will be issued by the company's wholly owned subsidiary Libbey Glass Inc. and guaranteed on a senior basis by Libbey Inc. Standard & Poor's said the outlook is stable. STICHTING PROFILE: Fitch Affirms BB Ratings on Class E Notes ------------------------------------------------------------ Fitch affirmed Stichting Profile Securitisation I's GBP376.6 million floating-rate notes and senior credit default swap due 2041 listed below. The transaction is a securitization of exposures to public private partnership project loans in the UK. -- GBP344.15 million SCDS: 'AAA' -- GBP0.1 million Class A+: 'AAA' -- GBP17.2 million Class A: 'AAA' -- GBP5.4 million Class B: 'AA' -- GBP3 million Class C: 'A' -- GBP3.1 million Class D: 'BBB' -- GBP3.7 million Class E: 'BB' Although there has been significant negative credit migration in the portfolio and an increase in expected losses since the deal closed in December 2005, existing subordination is still enough to maintain current ratings. Five names were downgraded out of which one name was downgraded by five notches and one by two notches. The deterioration in credit quality was slightly offset by the upgrades of two names by one notch each. Furthermore, the portfolio benefited from 15 projects moving from the construction phase to the operations phase, inherently decreasing the risk in the portfolio. The portfolio is also expected to improve with the remaining loans completing the construction phase by August 2008. Stichting Profile Securitisation I is a company with limited liability, incorporated under the laws of the Netherlands. At closing, Sumitomo Mitsui Banking Corporation Europe Ltd bought protection under a bank swap in respect of a GBP383 million reference portfolio, net of a threshold amount, from the German public agency Kreditanstalt fur Wiederaufbau. KfW hedged its exposure by entering into a senior swap with a senior swap provider by issuing certificates of indebtedness credit-linked to the performance of the underlying portfolio of debt obligations. The underlying projects use the skills and resources of the private sector to build, fund and operate publicly financed infrastructure assets such as hospitals, motorways and schools. Upon repayment of one asset, the portfolio was replenished with two new assets in November 2006. The portfolio is highly concentrated with each loan being approximately 3% of the portfolio on average. =============== P O R T U G A L =============== INTERTAPE POLYMER: Agrees to Sell Stake to Littlejohn Fund ---------------------------------------------------------- Intertape Polymer Group Inc. disclosed that Littlejohn & Co. LLC's indirect wholly owned subsidiary, Littlejohn Fund III L.P., will acquire all of the company's outstanding common shares at a price of US$4.76 per share in cash pursuant to a definitive agreement entered into by Intertape and the subsidiary. Including net debt outstanding, the total transaction value is approximately US$500 million. The non-management members of the board of directors of the company, after considering a number of factors, have unanimously approved the Arrangement and agreed to recommend that the company's shareholders approve the proposed Arrangement. TD Securities Inc., as financial advisor to the company's board, has concluded that as at May 1, 2007, the consideration to be received under the Arrangement is fair, from a financial point of view, to the holders of the company's common shares. "The signing of the Arrangement Agreement is the result of the review of strategic alternatives that was initiated by the Board in October 2006 with the objective of enhancing value for all of the company's shareholders," Michael L. Richards, chairman of the board of directors of the company, said. "During the course of this review, the board, with the assistance of TD Securities, evaluated a comprehensive range of value maximization alternatives for the company in the context of its existing capital structure and current operating environment. These alternatives included the sale of the company, raising additional equity, and the sale of one or more of the company's businesses to provide greater financial flexibility. This value maximization process included numerous strategic and financial parties." "Intertape represents an opportunity for Littlejohn to invest in a market leader and work closely with their management team to generate operating performance improvements and drive growth." Edmund J. Feeley, Partner of Littlejohn, said. "Based on Littlejohn's successful track record of investing in companies like Intertape, Littlejohn is confident that it can add value." Pursuant to the Arrangement, holders of the outstanding common shares of the company would receive US$4.76 cash per share, which represents a 5.5% premium over the volume weighted average trading price on the NYSE over the 30 trading days prior to today's disclosure. "The board has carefully weighed the Arrangement against alternatives available to the company, and has determined that the Arrangement provides the best value available to the company's shareholders," Michael L. Richards further stated. "Each member of the board intends to vote his shares in favor of the Arrangement," he added. "This transaction is also positive for the company's employees, customers and suppliers as Littlejohn is dedicated to continue to build on the strong market position of Intertape going forward, H. Dale McSween, interim chief executive officer of the company," said. The transaction will be implemented by way of a court-approved plan of arrangement under Canadian law and accordingly, subject to the approval of two-thirds of the votes cast by the company's shareholders at a special meeting of shareholders anticipated to take place in late June 2007. In addition, the Arrangement will require approval by the Superior Court of Quebec in the District of Montreal. The transaction will be subject to certain other customary conditions described in the Arrangement Agreement, including receipt of a limited number of regulatory approvals and no material adverse change in the company's business. The transaction is not subject to any financing condition. Littlejohn has received a commitment for the required debt financing and Littlejohn Fund III L.P. intends to fund the equity required to complete the transaction. It is anticipated that the Arrangement, if approved by the company's shareholders, will be completed early in the third quarter of 2007. The Arrangement Agreement also provides a non-solicitation covenant on the part of the company, a right in favor of Littlejohn to match any superior proposal and the payment of a termination fee to Littlejohn in the amount of US$5.9 million under certain circumstances. About Littlejohn & Co. LLC Based in Greenwich, Connecticut, Littlejohn & Co. LLC -- http://www.littlejohnllc.com/-- is a private equity firm that makes control equity investments in mid-sized companies that are underperforming their potential and can benefit from its operational and strategic approach. The company acts as a change agent and works closely with management to establish viable operating strategies, reinvigorate marketing and product initiatives, maximize the utilization of operating assets and establish a framework in which all corporate constituents- customers, employees, suppliers, management and equity interests-are aligned towards a common goal of success. The firm manages three investment funds with committed capital of US$200 million (Fund I), US$530 million (Fund II), and US$650 million (Fund III). About Intertape Polymer Headquartered in Quebec, Canada, Intertape Polymer Group (TSX: ITP) (NYSE: ITP) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the company employs about 2450 employees with operations in 18 locations, including 13 manufacturing facilities in North America, one in Portugal and in Mexico. * * * Intertape Polymer Group, Inc. carries Standard & Poor's Ratings' 'B-' corporate credit and senior secured ratings. In addition, the company also carries Standard & Poor's 'CCC' senior subordinated rating. =========== R U S S I A =========== ALTAIR-TRANS CJSC: Creditors Must File Claims by June 14 -------------------------------------------------------- Creditors of declared CJSC Altair-Trans have until June 14 to submit proofs of claim to: V. Leonov Insolvency Manager Post User Box 86 Mekhovshiko Kazan 420108 Tatarstan Russia The Arbitration Court of Tatarstan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-19557/2006-SG4-16. The Court is located at: The Arbitration Court of Tatarstan Room 12, Floor 2 Entrance 2, Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: CJSC Altair-Trans Osinovo Zelenodolskiy Tatarstan Russia BALAKHTINSKOYE CJSC: Asset Sale Slated for May 15 ------------------------------------------------- V. Lebedev, the insolvency manager and bidding organizer for CJSC Balakhtinskoye, will open a public auction for the company's properties at noon on May 15 at: CJSC Balakhtinskoye Lenina 1 Chistoye Pole Balakhtinskiy Krasnoyarsk Russia The case is docketed under Case No. A33-31604/2005. The company has set a RUR6,760,800 starting price for the auctioned assets. Interested participants have until May 14 to deposit an amount equivalent to 5% of the starting price. Bidding documents must be submitted to: V. Lebedev Post User Box 4 Berezovka Berezovskiy Krasnoyarsk Tel: (275) 2-24-00, 2-31-52 The Debtor can be reached at: CJSC Balakhtinskoye Chistoye Pole Balakhtinskiy Krasnoyarsk Russia EAR OF PRISHIMYE: Creditors Must File Claims by May 14 ------------------------------------------------------ Creditors of LLC Agrarian Company Ear of Prishimye (TIN 7205012754) have until May 14 to submit proofs of claim to: S. Leshev Temporary Insolvency Manager Kirova Str. 10-88 Yugorsk Khanty-Mansiyskiy 628260 Tyumen Russia The Arbitration Court of Tyumen commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A70-992/3-2007. The Court is located at: The Arbitration Court of Tyumen Khokhryakova Str. 77 627000 Tyumen Russia The Debtor can be reached at: LLC Agrarian Company Ear of Prishimye Tsentralnyj Pr. 4 Shablykino Ishimskiy Tyumen Russia ENERGY INVESTMENTS: Creditors Must File Claims by May 14 -------------------------------------------------------- Creditors of LLC Energy Investments have until May 14 to submit proofs of claim to: T. Rogozina Insolvency Manager Post User Box 260 Petrozavodsk 185001 Kareliya Russia The Arbitration Court of Kareliya will convene at 10:00 a.m. on Aug. 21 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A26-937/2007. The Court is located at: The Arbitration Court of Kareliya Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Russia The Debtor can be reached at: LLC Energy Investments Leningradskaya Str. 6B Petrozavodsk 185031 Kareliya Russia FRIGATE CJSC: Creditors Must File Claims by June 14 --------------------------------------------------- Creditors of declared CJSC Trading Company Frigate have until June 14 to submit proofs of claim to: M. Brylev Insolvency Manager Post User Box 119 191123 St. Petersburg Russia The Arbitration Court of St. Petersburg and Leningrad commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A56-31813/2006. The Court is located at: The Arbitration Court of St. Petersburg and Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: CJSC Trading Company Frigate Building 1 Shelisselburgskiy Pr. 17 193177 St. Petersburg Russia GORSKOYE OJSC: Creditors Must File Claims by May 14 --------------------------------------------------- Creditors of OJSC Gorskoye have until May 14 to submit proofs of claim to: V. Prudiev Insolvency Manager Office 25 Karelskaya Str. 37 163001 Arkhangelsk Russia The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A05-1111/2007. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Russia The Debtor can be reached at: OJSC Gorskoye Staroyuryevo Arkhangelsk Russia GRIBANOVSKIY SUGAR: Creditors Must File Claims by June 14 --------------------------------------------------------- Creditors of declared LLC Gribanovskiy Sugar have until June 14 to submit proofs of claim to: L. Shkilev Insolvency Manager Belinskogo Str. 48 305001 Kursk Russia The Arbitration Court of Voronezh commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A14-10630/2006-213/16B. The Court is located at: The Arbitration Court of Voronezh Room 606 Srednemoskovskaya Str. 77 Voronezh Russia The Debtor can be reached at: LLC Gribanovskiy Sugar Sakhzavodskaya Str. 22 Gribanovskiy Voronezh Russia HOME CREDIT: S&P Lifts Rating to B+ on Likely Parental Support -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long- and short- term counter-party credit ratings on Russia-based Home Credit and Finance Bank LLC to 'B+/B' from 'B/C'. The outlook is stable. "The upgrade reflects our expectation of support from HCFB's ultimate owner, the PPF Group N.V.," said Standard & Poor's credit analyst Eugene Tarzimanov. The rating agency classifies HCFB as a strategically important subsidiary of PPF, which benefits the bank in terms of capital, funding, risk management, and IT. The ratings are nevertheless constrained by the bank's low profitability, its short track record in Russia's undeveloped consumer finance market, and a lack of funding diversification. Positive factors include the bank's good capitalization and growing business volumes, fuelled by Russia's improving economy. "We expect HCFB to improve its profitability while keeping its high risk-reward strategy, and we expect PPF to continue providing capital, funding, and operating support to HCFB," said Mr. Tarzimanov. An upgrade would be contingent on the bank's generating higher profitability while maintaining adequate asset quality and good capitalization. A negative rating action could result if asset quality indicators deteriorated to the extent that they could not be absorbed by the high-risk premiums and led to an excessive drop in capitalization that would not be covered by HCFB's owner. INTER-RESOURCE OJSC: Creditors Must File Claims by May 14 --------------------------------------------------------- Creditors of OJSC Trade-Financial Group Inter-Resource (TIN 6154059236) have until May 14 to submit proofs of claim to: N. Agureev Temporary Insolvency Manager Klykova Str. 5/5 Elista 385000 Kalmykiya Russia The Arbitration Court of Kalmykiya commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. A22-195/07/9-26. The Debtor can be reached at: OJSC Trade-Financial Group Inter-Resource Klykova Str. 8/8 Elista 358000 Kalmykiya Russia RASPADSKAYA OJSC: Fitch Assign B+ Ratings with Stable Outlook ------------------------------------------------------------- Fitch Ratings assigned Russia-based OJSC Raspadskaya an Issuer Default 'B+' rating and a Short-term 'B' rating. The Outlook on the Issuer Default rating is Stable. Fitch has also assigned Raspadskaya Securities Limited's proposed issue of US$200 million to US$250 million loan participation notes expected senior unsecured 'B+' and Recovery 'RR4' ratings. The final ratings on the notes are contingent on the receipt of final documentation conforming to information already received and further details regarding the amount and tenor. The ratings reflect Raspadskaya's position as the second largest coking coal producer in Russia, strong financial profile as well as low-cost advantages. The company has the highest profitability among Russian and international metals and mining peers rated by Fitch with a FY06 EBITDAR margin of 55% on a pro- forma basis. Furthermore, Raspadskaya stands out among other coking coal producers based on its low cash costs of production, underpinned by its modernization program and newly launched preparation plant. Raspadskaya also had a track record of a conservative financial policy before debt-funded acquisitions in 2006 took its leverage to 1.4x, up from 0.2x in 2005. Although cash flow generation is expected to be sufficient to facilitate quick de-leveraging, Fitch notes the company's current dependence on a short-term US$300 million bridge loan, which expires in June. The ratings also factor in Raspadskaya's modest diversification across products, geography of sales and customers. Its focus on one product increases the company's exposure to one commodity cycle whereas its focus on the domestic market in conjunction with a concentrated customer base could amplify the company's vulnerability to the industry cyclicality. Furthermore, Fitch notes Raspadskaya's limited scale of operations, which could restrain operational and financial flexibility, particularly in an industry downturn. Fitch also notes that Raspadskaya is engaged in large related-party transactions (39% of FY06 EBITDAR), the largest portion of which is attributed to sales to steel maker Evraz, one of the main shareholders of the company. Although Evraz and Raspadskaya have a successful long-term relationship, any shift in Evraz's strategy towards other Russian coking coal producers may significantly affect the operations of Raspadskaya. Raspadskaya SL, a special purpose vehicle, is a public limited liability company incorporated in Ireland. The notes are limited recourse obligations of the issuer. While the notes are referred to as "secured", such security is established to ensure a link to the ultimate borrower Raspadskaya by assigning certain rights under a loan agreement between the SPV and Raspadskaya. The purpose of Raspadskaya SL is to issue the notes and lend the proceeds under a loan agreement to Raspadskaya. The latter will use the proceeds to refinance existing short-term US$300 million bridge loan. The loan agreement is governed by English laws. Covenants in the loan agreement include, among others, an equal ranking of the loan with present or future unsecured creditors of Raspadskaya and a negative pledge. Raspadskaya also has a net leverage ceiling of 3x. With FY06 net debt/EBITDA ratio of 1.4x, the company has some headroom under the above-mentioned covenant. Following the bond issue, the company also plans to issue a syndicated loan of about US$100 million to US$150 million. ROS-MIN-VODY: Creditors Must File Claims by May 14 -------------------------------------------------- Creditors of LLC Company Ros-Min-Vody have until May 14 to submit proofs of claim to: A. Maevskiy Insolvency Manager Office 602 Chernyshevskogo Str. 100 410056 Saratov Russia The Arbitration Court of Saratov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A57-2287/07-40. The Court is located at: The Arbitration Court of Saratov Babushkin Vvoz 1 Saratov Russia The Debtor can be reached at: LLC Company Ros-Min-Vody Saratov Russia ROSLAYN CJSC: Creditors Must File Claims by May 14 -------------------------------------------------- Creditors of CJSC Furniture Factory Roslayn have until May 14 to submit proofs of claim to: S. Zelenchekov Insolvency Manager Office 24 Lenina Pr. 64 Volzhskiy 404110 Volgograd Russia The Arbitration Court of Stavropol commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A10240/06-S5. The Court is located at: The Arbitration Court of Stavropol Mira Str. 458 b Stavropol Russia The Debtor can be reached at: CJSC Furniture Factory Roslayn Objezdnaya Str. 25A Stavropol Russia ROSTEK-MURMANSK CJSC: Creditors Must File Claims by May 14 ---------------------------------------------------------- Creditors of CJSC Rostek-Murmansk have until May 14 to submit proofs of claim to: S. Ryzhkov Temporary Insolvency Manager Office 719 Knipovicha Str. 23 183039 Murmansk Russia The Arbitration Court of Murmansk will convene at 2:30 p.m. on Oct. 1 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A42-975/2007. The Court is located at: The Arbitration Court of Murmansk Knipovicha Str. 20 Murmansk Russia The Debtor can be reached at: CJSC Rostek-Murmansk K. Libknekhta Str. 27 Murmansk Russia SEL-KHOZ-TEKHNIKA: Creditors Must File Claims by June 14 -------------------------------------------------------- Creditors of declared OJSC Sel-Khoz-Tekhnika have until June 14 to submit proofs of claim to: S. Postnov Insolvency Manager Rzhevskaya Str. 10 170023 Tver Russia The Arbitration Court of Tver commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A66-9249/2006. The Court is located at: The Arbitration Court of Tver Room 7 Sovetskaya Str. 23b Tver Russia The Debtor can be reached at: OJSC Sel-Khoz-Tekhnika Olenino Tver Russia SEVERSTAL OAO: Annual General Meeting Slated for June 15 -------------------------------------------------------- OAO Severstal will hold its Annual General Meeting at noon on June 15 at: Metallurgists Palace 41 Stalevarov Street Cherepovets Vologda Region Russia The registration of participants will start at 11.00 a.m. on that date. The Board of Directors of has approved the agenda of AGM 2007, which include: 1. election of the members of the Board of Directors of OAO Severstal; 2. approval of annual report, annual accounting report including income statement report; 3. distribution of profit for the year ended Dec. 31, 2006. approval of dividend for the year ended Dec. 31, 2006; 4. election of Chief Executive Officer of OAO Severstal; 5. approval of the new edition of Charter of OAO C Severstal; 6. approval of the new edition of Regulation on Board of Directors of OAO Severstal; 7. election of the members of check-up committee of OAO Severstal; 8. approval of an auditor of OAO Severstal; and 9. approval of an interested party deal (a number of related deals) between OAO Severstal and Promishlenno-Stroitelni Bank to allocate company's funds into bank deposits in Russian rubles and foreign currency on the following terms: the maximum amount limited by RUR150,000,000,000; the minimum interest rate not lower than 3% per annum; and allocation period more than one day. The Board of Directors recommended a dividend of RUR5 rubles per one share and per one global depositary receipt for the year ended Dec. 31, 2006. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * In a TCR-Europe report on April 24, Fitch Ratings revised the Outlooks on OAO Severstal's Issuer Default and National Long- term ratings to Positive from Stable. In addition, Fitch has affirmed Severstal's ratings at Issuer Default 'BB-', senior unsecured 'BB-', Short-term 'B' and National Long-term 'A+'. As reported in the TCR-Europe on April 16, Moody's Investors Service's confirmed its Ba3 Corporate Family Rating for Severstal OAO. Moody's also assigned a Ba3 Probability-of- Default rating to the company. Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ -------- Sr. Unsec. Regular Bond/Debenture Due 2009 B1 B1 LGD5 75% Sr. Unsec. Regular Bond/Debenture Due 2014 B1 B1 LGD5 75% As of Feb. 1, Severstal also carries BB- Long-term Foreign Issuer Credit and Long-term Local Issuer Credit ratings from Standard & Poor's. Outlook is stable. STANDARD BANK: S&P Lifts Ratings to BB- on Sustained Growth ----------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term counter- party credit rating to 'BB-' from 'B+' and Russia national scale rating to 'ruAA-' from 'ruA+' on Russian Standard Bank CJSC. At the same time, the 'B' short-term counter-party credit rating was affirmed. The outlook is stable. "The upgrade reflects RSB's sustained commercial and financial performance, supported by the bank's leading position in the domestic consumer finance market, successful business model, adequate credit risk management systems, and strong profitability," said Standard & Poor's credit analyst Ekaterina Trofimova. The ratings are still constrained by the high risks of operating in the fast-growing, increasingly competitive, and inherently higher risk Russian consumer finance market that is yet to be tested by an economic downturn, as well as by RSB's confidence- sensitive wholesale funding. The largest specialized consumer finance bank in Russia, RSB also ranks among the top 15 domestic banks, with assets of RUR193 billion (US$7.3 billion) and consumer loans of RUR182 billion at Dec. 31, 2006. "We expect that, in the context of Russia's growing economy, RSB will continue successfully expanding its consumer finance business, while keeping credit and funding risks under control," said Ms. Trofimova. The ratings could be raised if the bank builds a longer track record of strong profitability as well as solidifies asset quality, at levels appropriate for its business model in an increasingly competitive environment, namely amid lower lending interest rates, while enhancing capitalization. The ratings could be lowered if the bank's financial indicators were to show significant deterioration, namely a sharp rise in delinquencies, a significant drop in profits that would negatively affect capitalization, or material pressure on capitalization due to rapid loan growth. STAROYURYEV-AGRO-PROM-KHIMIYA: Claims Filing Period Ends May 14 --------------------------------------------------------------- Creditors of OJSC Staroyuryev-Agro-Prom-Khimiya have until May 14 to submit proofs of claim to: V. Vinogradov Temporary Insolvency Manager Apartment 2 Mira Str. 32 Sosnovka Tambov Russia The Arbitration Court of Tambov will convene at 9:50 a.m. on July 23 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A64-941/07-21. The Debtor can be reached at: OJSC Staroyuryev-Agro-Prom-Khimiya Staroyuryevo Tambov Russia VELSKAYA OJSC: Creditors Must File Claims by May 14 --------------------------------------------------- Creditors of OJSC Poultry Farm Velskaya have until May 14 to submit proofs of claim to: V. Prudiev Insolvency Manager Office 25 Karelskaya Str. 37 163001 Arkhangelsk Russia The Arbitration Court of Arkhangelsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A-05-1100/2007. The Court is located at: The Arbitration Court of Arkhangelsk Loginova Str. 17 163069 Arkhangelsk Russia The Debtor can be reached at: V. Prudiev Insolvency Manager Office 25 Karelskaya Str. 37 163001 Arkhangelsk Russia VOLOGODSKAYA HOLDING: Creditors Must File Claims by June 14 ----------------------------------------------------------- Creditors of declared OJSC Vologodskaya Holding Company have until June 14 to submit proofs of claim to: A. Krasilnikov Insolvency Manager Office 18a Chekhova Str. 4 160009 Vologda Russia The Arbitration Court of Vologda commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A13-7628/2006-25. The Court is located at: The Arbitration Court of Vologda Hall 4 Gertsena Str. 1a Vologda Russia The Debtor can be reached at: OJSC Vologodskaya Holding Company Vologda Russia YUKOS OIL: Promregion Offers RUR4.9 Billion for Southern Assets --------------------------------------------------------------- Promregion Holding has won a bid to acquire OAO Yukos Oil Co.'s assets in the Krasnodar Region for RUR4.9 billion, published reports say. Versar, Promregion, and Neft Aktiv (an OAO Rosneft Oil subsidiary) participated in the ninth auction for the bankrupt oil concern's assets. The lot carried a RUR3.7 billion starting price, a bid increment of RUR37.1 million, and a required deposit sum of RUR742.4 million. The lot, RIA Novosti relates, is comprised of: -- 100% in Stavropolnefteprodukt public company; -- 26.26% in Kubanenergo, Kubanenergosbyt, Kuban Generating Company and Kubanskiye Magistralnyye Seti public companies; -- 100% stake in OOO Val Shatskogo; -- 51% stake in the OOO Yu-Kuban; and -- a promissory note of Stavropolnefteprodukt with a face value of R1.16 million.] OAO Lukoil representative Dmitry Dolgov denied speculations that Promregion is linked to the company. In a TCR-Europe report on May 2, Lukoil vice president Leonid Fedun earlier said it will not participate in the remaining auctions for Yukos' bankrupt assets noting that the latter's main assets have already been "practically distributed". About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ========= S P A I N ========= SANTANDER CONSUMER: S&P Assigns Junk Ratings to Class D Notes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary credit ratings to the floating-rate notes to be issued by Fondo de Titulizaci�n de Activos Santander Consumer Spain Auto 07-1, an SPE. The collateral comprises a portfolio of loans granted to individuals and enterprises for buying new or used cars. The originator of the loans is Santander Consumer, E.F.C., S.A., a subsidiary of Santander Consumer Finance. This is SCF's third securitization in Spain. The previous transaction, Fondo de Titulizacion de Activos Santander Consumer Spain Auto 06 closed in October 2006. Compared with the previous transaction, Santander Consumer Spain Auto 07-1 features a variable guaranteed margin provided by the swap. This feature is previously unheard of in Spanish ABS securitizations, and has been proposed for the first time for this transaction. Ratings List Fondo de Titulizaci�n de Activos Santander Consumer Spain Auto 07-1 EUR2.04 Billion Floating-Rate Notes Prelim. Prelim. Amount Class Rating (Mln. EUR) ----- ------ -------- A AAA 1,902 B A 78 C BBB 20 D CCC- 40 =========== S W E D E N =========== BRIGHTPOINT INC: Earns US$35.6 Million in Full Year 2006 -------------------------------------------------------- Brightpoint Inc. reported net income of US$35.6 million for the year ended Dec. 31, 2006, compared with net income of US$10.4 million for the year ended Dec. 31, 2005. Results of operations for 2005 included a loss from discontinued operations of US$21.5 million relating primarily to Brightpoint France, which was sold on Dec. 16, 2005. Total revenue was US$2.4 billion for the year ended Dec. 31, 2006, which represents growth of 13% compared to total revenue of US$2.1 billion for the year ended Dec. 31, 2005. Operating income from continuing operations increased to US$48.4 million in 2006 from US$44.4 million in 2005. The increase in operating income was due to an US$18.9 million increase in gross profit, partly offset by a US$15.8 million increase in selling, general and administrative expenses. Operating income also improved due to the US$900,000 facility consolidation charge during 2005 that did not recur during 2006. Cash and cash equivalents were US$54.1 million at Dec. 31, 2006, a decrease of US$49.5 million from Sept. 30, 2006. Liquidity (unrestricted cash and unused borrowing availability) was approximately US$129.8 million as of Dec. 31, 2006, compared to US$202 million as of Sept. 30, 2006. At Dec. 31, 2006, the company's balance sheet showed US$778.3 million in total assets, US$583.5 million in total liabilities, and US$194.8 million in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1e5d About Brightpoint Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * On April 12, 2006, Standard & Poor's placed Brightpoint's long- term local and foreign issuer credit ratings at BB- with a stable outlook. ===================== S W I T Z E R L A N D ===================== ABLANDSCHEN SPORTANLAGEN: Liquidation Claims Due May 23 ------------------------------------------------------- Creditors of JSC Ablandschen Sportanlagen have until May 23 to submit their claims to: Hans Danzer Liquidator Sagimoos 1657 Ablandschen Switzerland The Debtor can be reached at: JSC Ablandschen Sportanlagen Saanen BE Switzerland BY THE WAY: Creditors' Liquidation Claims Due May 29 ---------------------------------------------------- Creditors of LLC By the way fashion have until May 29 to submit their claims to: Ingrid Hauk Liquidator Seestrasse 56A 3800 Unterseen Interlaken BE Switzerland The Debtor can be reached at: LLC By the way fashion Interlaken BE Switzerland FIMA CONSULTING: Creditors' Liquidation Claims Due May 25 --------------------------------------------------------- Creditors of JSC FIMA Consulting have until May 25 to submit their claims to: Leuthold Treuhand Liquidator Kasernenstrasse 30 8180 Bulach ZH Switzerland The Debtor can be reached at: JSC FIMA Consulting Bulach ZH Switzerland GROUP 3M: Zug Court Starts Bankruptcy Proceedings ------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against JSC Group 3M on March 20. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: JSC Group 3M 6300 Zug Switzerland JMW PUMPEN: Creditors' Liquidation Claims Due May 21 ---------------------------------------------------- Creditors of JSC JMW Pumpen have until May 21 to submit their claims to: Dr. Markus Dorig Liquidator Badertscher Dorig Poledna Muhlebachstrasse 32 Postfach 769 8024 Zurich Switzerland The Debtor can be reached at: JSC JMW Pumpen Guttingen Kreuzlingen TG Switzerland KANALWURM ABLAUFREINIGUNGS: Liquidation Claims Due May 24 --------------------------------------------------------- Creditors of LLC Kanalwurm Ablaufreinigungsservice have until May 24 to submit their claims to: Robert Munz Liquidator Schulstrasse 25 5417 Untersiggenthal Baden AG Switzerland The Debtor can be reached at: LLC Kanalwurm Ablaufreinigungsservice Untersiggenthal Baden AG Switzerland SEVEN LAYERS: Zug Court Starts Bankruptcy Proceedings ----------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC Seven Layers on March 13. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC Seven Layers Baarerstrasse 57 6304 Zug Switzerland WIBE LLC: Creditors' Liquidation Claims Due May 23 -------------------------------------------------- Creditors of LLC WiBe have until May 23 to submit their claims to: Hanspeter Wittwer Liquidator Unterdorf 2 6262 Langnau bei Reiden Willisau LU Switzerland The Debtor can be reached at: LLC WiBe Biel/Bienne BE Switzerland ZAZA RISTORANTE: Aargau Court Starts Bankruptcy Proceedings ----------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC Zaza Ristorante on April 11. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Baden 5402 Baden AG Switzerland The Debtor can be reached at: LLC Zaza Ristorante Rathausgasse 14 5400 Baden AG Switzerland ZYTOLAB JSC: Creditors' Liquidation Claims Due May 31 ----------------------------------------------------- Creditors of JSC Zytolab have until May 31 to submit their claims to: JSC Treuhand Strasser Liquidator Moserstrasse 24 Postfach 685 3000 Bern Switzerland The Debtor can be reached at: JSC Zytolab Bern Switzerland =========================== U N I T E D K I N G D O M =========================== ADVANSTAR COMMUNICATIONS: Gets Requisite Consents to Amend Notes ---------------------------------------------------------------- Advanstar Communications Inc. received requisite consents from holders of approximately: -- 100% of its outstanding 10-3/4% Second Priority Senior Secured Notes due 2010 (CUSIP Nos. 00758RAM6 and 00758RAH7); and -- 93.41% of its 12% Senior Subordinated Notes due 2011 (CUSIP No. 00758RAF1). Advanstar, Inc., has also received consents from holders of 97.96% of its 15% Senior Discount Debentures due 2011 (CUSIP No. 00759JAE1). The consents are sufficient to effect all of the proposed amendments to the indentures governing each of the Notes as set forth in the Issuers' Offer to Purchase and Consent Solicitation Statement dated April 19, 2007 and the related Consent and Letter of Transmittal, pursuant to which the tender offers and the consent solicitations are being made. The proposed amendments eliminate substantially all of the restrictive covenants and eliminate or modify certain default provisions in the indentures. The proposed amendments to the indenture governing the Senior Secured Notes also release the security interest in the collateral under that indenture and related security documents. As reported in the Troubled Company Reporter on April 26, 2007, the tender offers and consent solicitations will expire at 5:00 p.m., New York City time, on May 18, 2007, unless extended. The Issuers intend to extend the Expiration Date until closing of the acquisition of the Issuers, which is expected to occur on or about May 31, 2007. The purchase price, assuming a settlement date of May 31, 2007, for each US$1,000 principal amount outstanding of Senior Secured Notes is US$1,057.53, the price calculated from the yield to maturity on the applicable reference United States Treasury, as of 10:00 a.m., New York City time, May 2, 2007, plus a fixed spread of 0.50% less the consent payment. The purchase price for each US$1,000 principal amount outstanding of Senior Subordinated Notes is US$1,013.50, and the purchase price for each US$1,000 principal amount outstanding of Debentures is US$1,012.50. Holders who tendered their Notes and delivered their consents on or prior to the Consent Date will, in addition to the purchase price, receive a consent payment of US$30 per US$1,000 outstanding principal amount of Notes tendered and accepted in the tender offers. Holders whose Notes are accepted for purchase in the tender offers will also receive accrued and unpaid interest to, but not including, the settlement date for the tender offers. The Issuers will proceed to execute supplemental indentures effecting the proposed amendments to the indentures governing each series of Notes. The supplemental indentures will become operative only if the Issuers accept the Notes for payment pursuant to the terms of the tender offers. When the supplemental indentures become operative, they will be binding on the holders of Notes not purchased in the tender offers. Credit Suisse Securities (USA) LLC is the exclusive Dealer Manager and Solicitation Agent for the tender offers and consent solicitations. Questions regarding the tender offers and consent solicitations may be directed to Credit Suisse Securities (USA) LLC's Liability Management Group, at (800) 820- 1653 (toll free) or (212) 538-0652 (collect). Requests for the Statement, Consent and Letter of Transmittal or other documents related to the tender offers and solicitations may be directed to the Information Agent, D.F. King & Co., Inc., at (888) 628- 8208 (toll free). About Advanstar Communications Inc. Headquartered in New York City, Advanstar Communications Inc. -- http://www.advanstar.com/-- a wholly owned subsidiary of Advanstar Inc., provides integrated marketing solutions for the Fashion, Life Sciences and Powersports industries. Advanstar serves business professionals and consumers in these industries with its portfolio of 91 events, 66 publications and directories, 150 electronic publications and Web sites, well as educational and direct marketing products and services. Advanstar has roughly 1,000 employees and currently operates from multiple offices in North America and in the United Kingdom. * * * As reported in the Troubled Company Reporter on April 3, 2007, Moody's Investors Service placed the ratings of Advanstar Communications Inc., under review for possible downgrade. The ratings placed under review were the company's First lien senior secured revolving credit facility, Ba3; Senior secured first lien term loan, Ba3; 10.75% senior secured second priority notes, B1; 12% senior subordinated global notes, Caa1; Corporate Family rating, B3; and Probability of Default rating, B3. The ratings review follows the report that Advanstar has entered into a definitive agreement to be acquired by an investor group led by Veronis Suhler Stevenson in a transaction valued at around US$1.1 billion. AES DATA: Proof of Claim Deadline Slated for May 31 --------------------------------------------------- Creditors of AES Data Ltd. have until May 31 to submit their proofs of debt to: Filippa Connor Liquidator B & C Associates Trafalgar House Grenville Place Mill Hill London NW7 3SA England Filippa Connor of B & C Associates was appointed liquidator of the company on April 23. ALERIS INTERNATIONAL: Completes EKCO Products Acquisition --------------------------------------------------------- Aleris International Inc. has completed its purchase of EKCO Products' assets, a light gauge sheet and heavy gauge foil producer headquartered in Clayton, New Jersey. As reported in the Troubled Company Reporter-Latin America on April 27, 2007, Aleris International has entered into a definitive agreement with Charter Oak Capital Partners to acquire the assets of EKCO Products. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The Company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported on Dec. 22, 2006, Standard & Poor's rated Aleris International Inc.'s senior secured first-lien term loan carries at 'B+' loan and gave the company a '2' recovery rating after the report that the company increased the term loan by US$125 million. Ratings List: * Aleris International Group -- Corporate Credit Rating at B+/Stable/ -- Senior Secured B+ ALL AMERICAN: Court Approves First Day Motions and DIP Financing ---------------------------------------------------------------- All American Semiconductor Inc. disclosed the approval of its first day motions by the U.S. Bankruptcy Court for the Southern District of Florida, Miami Division. The company received approval of first day motions seeking relief to enable the company to continue operations during the Chapter 11 process, including debtor-in-possession financing from its existing bank group, and the payment of prepetition, employee-related and certain customer obligations. In addition, All American received Bankruptcy Court approval of bidding procedures for an auction sale of its businesses as a going concern to be completed no later than June 8, 2007. The Court approved interim DIP financing of up to US$13 million, which is expected to provide the company with sufficient liquidity to continue operations during the Chapter 11 case and is based on a budget agreed upon with the bank group. The final hearing on DIP financing is scheduled on May 17. "The company is pleased with this outcome," Bruce Goldberg, president and ceo of All American, said. "The Court's approval of the company's motions allows All American to continue as a going concern as the company works towards an auction sale of the business." The approved sale process provides for interested purchasers to complete due diligence and submit binding bids by May 28, 2007, with the auction scheduled for May 31 at the Miami offices of the company's counsel, Squire, Sanders & Dempsey, LLP. The hearing to approve a sale to the highest bidder at the auction is scheduled for June 5, 2007, with the sale closing no later than June 8. Prior to the company's bankruptcy filing, it signed a nonbinding letter of intent with a potential purchaser of substantially all of the company's and its subsidiaries' assets. The company advised the Bankruptcy Court that it is actively negotiating a binding purchase agreement with this party to become the stalking horse for the sale. In the event such an agreement is reached, specific stalking horse protections, including a breakup fee, will be subject to the approval of the DIP lenders and the Bankruptcy Court. In addition, a sale to the highest bidder at the auction will also require the approval of the Bankruptcy Court. On April 25, 2007, All American and its 33 subsidiaries in the United States, Canada, Mexico, Europe and Asia filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code. All American determined to file for relief under Chapter 11 after extensively exploring and carefully evaluating all of its options. All American believes that the Chapter 11 process provides the best alternative for maximizing the value of the company for the benefit of its stakeholders including suppliers, customers and employees. About All American All American Semiconductor Inc -- http://www.allamerican.com/-- (Nasdaq: SEMI) (Pink Sheets: SEMI.PK) is a Delaware corporation with its principle place of business in Miami, Florida. It also maintains corporate offices for West Coast operations in San Jose, California. All American is a distributor of electronic components manufactured by others. The company distributes a full range of semiconductors including transistors, diodes, memory devices, microprocessors, microcontrollers, other integrated circuits, active matrix displays and various board- level products. All American also distributes passive components such as capacitors, resistors and inductors; and electromechanical products such as power supplies, cable, switches, connectors, filters and sockets. All American also offers complete solutions for flat panel display products. In total, the company offers approximately 40,000 products produced by approximately 60 manufacturers. These products are sold primarily to original equipment manufacturers in a diverse range of industries such as manufacturers of computers and computer- related products, networking, satellite, wireless and other communications products; Internet infrastructure equipment and appliances; automobiles and automotive subsystems; consumer goods; voting and gaming machines; defense and aerospace equipment; and medical instrumentation. The company also sells products to contract electronics manufacturers who manufacture products for companies in all electronics industry segments. The company has 36 strategic locations throughout North America, as well as operations in both Asia and Europe, particularly South Korea and England and Wales. The company and its Debtor-affiliates filed for Chapter 11 protection on April 25, 2007, (Bankr. Case No.: 07-12963 through 07-13002 S.D. Fla.) Tina M. Talarchyk, Esq. of the Squire Sanders & Dempsey LLP represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of US$117,634,000 and total debts of US$106,024,000. AMERICAN MEDICAL: Earns US$3.69 Million for First Quarter 2007 -------------------------------------------------------------- American Medical Systems Holdings Inc. reported US$3.69 million in net profit on US$108.39 million in net revenues for the first quarter ended Mar. 31, 2007, compared with US$11.47 million in net profit on US$73.62 million in net revenues for the first quarter ended April 1, 2006. "As we previously communicated, internal production and planning issues, along with the specific vendor quality issues we experienced during the first quarter, resulted in both top and bottom line disruption as we were not able to fulfill all orders due to product availability challenges," Martin J. Emerson, President and Chief Executive Officer, said. "In addition, manufacturing rework and warranty costs associated with our new HPS laser console applied pressure to our gross margin during the quarter. I am confident that the vast majority of these costs are behind us, and as we look forward, we will see the type of gross margin expansion we had planned for 2007." "While the first quarter was clearly a disappointment, we remain confident in our ability to address our supply issues during the second quarter," Mr. Emerson noted. "The underlying strength of demand across much of our business in the first quarter means we are poised to see strong revenue performance as we exit the second quarter." At Mar. 31, 2007, American Medical Systems had US$1.09 billion in total assets, US$795.2 million in total liabilities and US303.89 million in stockholders' equity. Outlook The Company reiterated the full year 2007 revenue guidance of US$475 million to US$500 million and reported earnings per share from continuing operations of US$0.63 to US$0.70. Revenue projected for the second quarter of 2007 ranges from US$112 million to US$118 million, with an anticipated earnings per share range of US$0.08 to US$0.11. It is anticipated that all supply issues will be resolved during the second quarter; however, these projected results assume a level of recovery time in the market. About American Medical American Medical -- http://www.americanmedicalsystems.com/ -- develops and delivers pelvic health products for both men and women. AMS has operations in Australia, Austria, Brasil, Canada, Deutschland, Benelux, France, Iberica, Portugal, the United Kingdom, and the USA. * * * The Troubled Company Reporter - Asia Pacific reported on March 15, 2007, that in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology, the rating agency confirmed its B1 Corporate Family Rating for American Medical Systems Inc. Additionally, Moody's revised its probability-of- default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Secured Revolver due 2012 Ba3 Ba2 LGD2 22% Senior Secured Term Loan B due 2012 Ba3 Ba2 LGD2 22% ARMSTRONG WORLD: Earns US$26 Million in Quarter Ended March 31 -------------------------------------------------------------- Armstrong World Industries, Inc., reported first quarter 2007 net sales of US$863.4 million, up 5 percent, from US$822.2 million in the same period for 2006. The sales increase includes a US$15 million benefit from foreign exchange. Reported operating income from continuing operations grew to US$65.5 million from US$47.2 million in the first quarter of 2006. Adjusted operating income from continuing operations of US$61.7 million increased 28 percent compared to US$48.2 million in the prior year quarter on the same basis. The Company uses adjusted income from operations in managing the business, and believes the adjustments provide users of this financial information with meaningful comparisons of operating performance between periods. Adjusted income excludes the impact of fresh-start reporting, restructuring charges and related costs, and certain other gains and losses to allow meaningful comparisons of operating performance. These adjustments amounted to a benefit of US$3.8 million in the first quarter of 2007 compared to charges of US$1.0 million in the first quarter of 2006. First quarter 2007 adjusted operating income grew US$14 million year-over-year despite significant weakness in the U.S. residential markets. Growth in the company's commercial products and in its international businesses combined with improved manufacturing performance more than offset the impact of lower sales of many residential products. Segment Highlights Resilient Flooring net sales were US$290.6 million in the first quarter of 2007 and US$294.2 million in the same period of 2006. Excluding the favorable impact of foreign exchange rates, net sales decreased four percent. The decline was due to decreased volume for residential vinyl products and lower laminate prices in North America, partially offset by growth in Europe and Asia. Reported operating income was US$10.8 million in the quarter compared to a reported loss in the first quarter of 2006 of US$3.9 million. Adjusted operating income of US$8.4 million improved compared to income of US$5.3 million on the same basis in the prior year period. The improvement was realized as reduced manufacturing expense and lower SG&A expense offset the decline in sales. Wood Flooring net sales of US$199.2 million in the first quarter declined 3 percent from US$205.2 million in the prior year as volume declines related to the residential housing market slowdown more than offset the benefit from previously announced acquisitions. Reported operating income of US$8.4 million in the quarter was below income of US$11.5 million reported in the first quarter of 2006. Adjusted operating income of US$5.0 million declined from income of US$11.5 million on the same basis in the prior year period. The reduction in operating income was due to the decline in sales volume, unfavorable product mix and higher lumber prices. Building Products net sales of US$313.9 million in the first quarter of 2007 increased from US$267.9 million in the prior year. Excluding the effects of favorable foreign exchange rates of US$8 million, sales increased by 14 percent due to price, volume growth in Europe and the Pacific Rim and improved product mix in North America. Reported operating income increased to US$53.7 million from US$40.0 million in the first quarter of 2006. Adjusted operating income of US$57.5 million grew from income of US$40.4 million on the same basis in the prior year period. The growth was driven by improved price realization, international volume growth, better product mix and improved manufacturing productivity. These benefits were only partially offset by inflation in raw materials and by increased investment in SG&A to support the sales growth. Cabinets net sales in the first quarter of 2007 of US$59.7 million increased 9 percent from US$54.9 million in 2006 on increased volume. Reported operating income for the first quarter of US$0.9 million improved from US$0.2 million in the prior year, driven by the sales growth, partially offset by increased investment in SG&A to support the sales growth. There were no material adjustments to operating income in either period. Unallocated corporate expense of US$8.3 million in 2007 increased from US$0.6 million in 2006. Adjusted expense of US$10.8 million increased from US$9.2 million on the same basis in the prior year, primarily due to a lower U.S. pension credit driven by unfavorable demographic changes. Outlook Global macroeconomic indicators suggest a diverse outlook for the company's key markets for 2007. Based on these indicators, the company expects flat to modest growth across North American and European commercial markets, and sustained growth in the Pacific Rim. The outlook for North American residential markets is uncertain due to the continuing weakness in U.S. housing starts and mixed indicators for renovation. On a consolidated basis, improved prices and increased manufacturing productivity are anticipated to offset cost inflation. About Armstrong Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc. -- http://www.armstrong.com/-- the major operating subsidiary of Armstrong Holdings, Inc., designs, manufactures and sells interior floor coverings and ceiling systems, around the world. The company has Asia-Pacific locations in Australia, China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam. It also has locations in Colombia, Costa Rica, Greece and Iceland, among others. * * * The Troubled Company Reporter - Asia Pacific reported that Standard & Poor's Ratings Services assigned its 'BB' bank loan rating to the proposed US$1.1 billion senior secured bank facility of Armstrong World Industries Inc. (D/--/--), based on preliminary terms and conditions. As reported in the Troubled Company Reporter on Oct. 9, 2006, Standard & Poor's Ratings Services raised its corporate credit rating on Armstrong World Industries Inc. to 'BB' from 'D', following the Company's emergence from bankruptcy on Oct. 2, 2006. S&P said the outlook is stable. DARCY INDUSTRIES: Creditors' Meeting Slated for May 15 ------------------------------------------------------ Creditors of Darcy Industries Ltd. will hold its initial meeting at 1:00 p.m. on May 15 at: Freemasons Hall 36 Bridge Street Manchester M3 3BT England Creditors who want to vote at the meeting have until May 14 submit a written statement of claim to: Paul Dumbell Joint Administrator KPMG Restructuring St. James Square Manchester M2 6DS England A company may vote either by proxy or through a representative appointed by board resolution. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. DECO SERIES: S&P Junks Class E Notes & Removes Negative Watch ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its credit rating on the class E notes issued by DECO Series 2005-UK Conduit 1 PLC to 'CCC' and removed them from CreditWatch with negative implications where they had been placed on April 10, 2007. The class D notes remain on CreditWatch negative. At the same time, the ratings on the class A, B, and C notes were affirmed. The class D and E notes were placed on CreditWatch negative following the publication on March 30 of a special notice by the master servicer, Deutsche Bank AG. In this notice new valuations for the three properties securing the specially serviced Kashani loan were reported as being considerably lower than those provided at origination. Standard & Poor's understands that the properties are to be marketed for rent with a view to future sale within the next month. If sales are realized for each of the properties, based on the new valuations, the proceeds will not be adequate to repay the outstanding loan balance and will result in a loan event of default. Today's rating action on the class E notes is in anticipation of this outcome. The Kashani loan, which represents 1.4% of the outstanding pool balance at January 2007, was transferred to special servicing on Dec. 5, 2006 following the nonpayment of interest and principal at the October 2006 interest payment date. The liquidity facility has been drawn upon on each subsequent interest payment date to cover the interest due under the loan. The facility is subject to an appraisal reduction mechanism, which can reduce the amount of liquidity available to noteholders if collateral values decrease. The reduction mechanism has now been triggered as a consequence of the decrease in value of the Kashani assets. Standard & Poor's considers that in the future, the liquidity facility amount, which can be drawn to cover the interest on the loan, will reduce and will therefore result in interest shortfalls on the junior notes. Standard & Poor's continues to closely monitor the performance of the four other loans (currently accounting for 5.1% of the outstanding pool balance at January 2007) affected by the administration of the London and Edinburgh Swallow Group who was originally a tenant in 12 properties securing these loans. The Creditwatch negative placement remaining on the class D notes reflects Standard & Poor's concern over the situation and the class D notes' increased exposure to possible adverse developments associated with these loans. The transaction closed in July 2005 and originally comprised 23 loans, plus an additional five prefunded loans added to the pool in October 2005, secured on 59 commercial and residential real estate properties in England and Scotland. As of the January 2007 interest payment date, the outstanding balance was GBP150.25 million and there were 19 loans remaining secured on 39 properties. Ratings List DECO Series 2005-UK Conduit 1 PLC GBP236.057 Million Commercial Mortgage-Backed Floating-Rate Notes Class Rating To From -- ---- Ratings Lowered and Removed From CreditWatch With Negative Implications E CCC BBB-/Watch Neg Ratings Remaining On CreditWatch With Negative Implications D BBB/Watch Neg BBB/Watch Neg Ratings Affirmed A AAA B AA C A EDWARDS UKCO: Moody's Assigns (P)B1 Rating on Strong Performance ---------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B1 corporate family rating to Edwards UKCo 1. Simultaneously these provisional ratings have been assigned to Edwards (Cayman Island II) Limited: -- (P)Ba1 rating to the company's US$100 million Superpriority Revolver; -- (P)B1 rating to the company's US$370 million 1st Lien Term Loan; and -- (P)B3 rating to the company's US$245 million 2nd Lien PIK Toggle Loan. The ratings for the facilities reflect both the overall probability of default of the company, to which Moody's has assigned a probability of default-rating of B1, and a loss given default rating of LGD1 for the revolver, LGD3 for the 1st Lien Term Loan and LGD5 for the 2nd Lien Term Loan. The rating outlook is stable. Together with the company's management, CCMP Capital signed a definitive agreement to acquire the equipment business of BOC Edwards from Linde in a US$1 billion transaction. The funding and additional transaction costs will be sourced from US$325 million equity, a US$87 million contingent seller note and US$715 million bank debt, including a US$100 million revolver. "The assigned provisional (P)B1 ratings for Edwards reflects its strong position as a market leader for vacuum equipment in the semi-conductor industry as well as in other industry vacuum applications," Oliver Giani, Vice President -- Senior Analyst and Moody's lead analyst for European engineering and manufacturing companies said. In view of a high initial leverage of this transaction, we take comfort from the company's demonstrated ability to generate free cash flow despite the cyclicality of the semiconductor industry, also benefiting from the stabilizing contribution of its General Vacuum division and substantial service revenues. Revenues from general vacuum equipment, together with vacuum service across both segments, account for approximately 43% of FY06 revenues," he added. Edwards' CFR reflects the company's: (i) track record of strong operational performance and free cash flow generation despite its exposure to a volatile semiconductor equipment industry (approximately 57% of 2006 revenues); (ii) the company's leading market positions and strong competitive position; (iii) continuous initiatives to reduce costs; and (iv) the diversified customer base. The rating also takes into account: (i) the high debt leverage resulting in very weak interest coverage of 1.2x and Debt/EBITDA (excluding company- projected run-rate cost savings and including the contingent seller note) multiples above 6x at FYE 2006, which should however improve notably to below 6x when incorporating the impact of cost savings which have already materialized to some extent in the first quarter 2007 and are expected to become fully visible this year; (ii) the pricing pressure of the group's main customers in the semiconductor industry; (iii) the low product diversity and dependency on structural swings; and (iv) the f/x risk resulting from the fact that most of revenues are billed in US-Dollars with a significant cost base mainly in the U.K. Moody's commented that taking into consideration the initially high leverage and weak interest coverage metrics, the assigned ratings incorporate the expectation of earnings and cash improvements in line with company expectations, which should also be supported by an expected improvement in the semiconductor industry in the second half of 2007. An inability of the company to improve its leverage (Debt/EBITDA) below 6x by FYE 2007 (end of September) or a weakening of its interest coverage over that time horizon could exert downward rating pressure The (P)B1 rating of the US$370 million term loan reflects an LGD3 loss given default assessment as both, this facility and the revolver are secured by a first lien on materially all of the company's assets. The (P)Ba1 rating of the "super-priority" revolver -- LGD1 loss given default assessment - reflects its contractual priority versus the US$370 million term loan. The (P)B3 rating of the 2nd lien PIK toggle loan reflects an LGD5 loss given default assessment as it will be junior in priority to the liens securing the 1st Lien Facilities. Assignments: * Issuer: Edwards (Cayman Island II) Limited -- Senior Secured Bank Credit Facility, Assigned a range of 07 - LGD1 to (P)Ba1; -- Senior Secured Bank Credit Facility, Assigned a range of 42 - LGD3 to (P)B1; -- Senior Secured Bank Credit Facility, Assigned a range of 80 - LGD5 to (P)B3 * Edwards UKCo 1 Limited -- Probability of Default Rating, Assigned B1; -- Corporate Family Rating, Assigned (P)B1. BOC Edwards, headquartered in Crawley, United Kingdom has a leading position in the manufacturing of highly engineered vacuum products and is world market leader in the supply of vacuum. The company offers its products and related services to several markets including the semiconductor industry, the steel industry, for the analysis of drugs, nanotechnology and genome research and for the production of flat panel TVs and solar panels, with the semiconductor industry being the main market accounting for approximately 75% of total revenues. Edwards produces over 5,000 products ranging from simple vacuum gauges to complex vacuum solutions for flat panel processing and serves approximately 400 semiconductor equipment customers and 20,000 General Vacuum customers. During the last twelve-month period ending in December 2006, Edwards achieved revenues of US$1.1 billion, with a headcount of over 4,000 employees. EDWARDS UKCO: S&P Assigns BB- Credit Rating with Stable Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'BB-' long-term corporate credit rating to Edwards UKCo 1 Ltd., a leading worldwide supplier of vacuum technology. The outlook is stable. In addition, the loans and facility of related entity Edwards (Cayman Islands II) Ltd. have also been assigned ratings: -- US$100 million proposed super senior revolving credit facility, which has been assigned a recovery rating of '1', indicating a high expectation of full recovery of principal in the event of a payment default, and an issue rating of 'BB+'. -- US$370 million first-lien term loan, which has been assigned a recovery rating of '2', indicating substantial (80%-100%) recovery of principal in the event of a payment default, and an issue rating of 'BB-'. -- US$245 million second-lien payment-in-kind toggle loan, which has been assigned a recovery rating of '5', indicating negligible (0-25%) recovery of principal, and an issue rating of 'B'. "The ratings on Edwards reflect the company's vulnerability to the cyclicality of the semiconductor industry, high fixed costs, raw materials dependence, and technology risks inherent within the high precision manufacturing industry," said Standard & Poor's credit analyst Louise Newey. "These weaknesses are partially offset by the company's global market-leading positions within the sectors of semiconductor vacuum subsystem supply, industrial vacuums, and R&D. Edwards has significant intellectual property in its core technologies and a broad product portfolio including about 1,600 patented products." The global vacuum technology market is worth an estimated US$4.0 billion, split between semiconductor markets (US$2.5 billion) and general vacuums (US$1.5 billion). Semiconductor-driven sales represented 57% of Edwards's revenues in 2006 and general vacuum revenues represented 20%, with the remainder from service revenues. S&P expects Edwards to continue maintaining its leverage position, despite an expected dip in revenues in 2007 driven by cyclicalities in semiconductor equipment revenues. At the 'BB-' rating level, the company is expected to achieve a debt-to-EBITDA ratio of about 4.5x in 2007, and 4.0x or less in 2008 and 2009. Any negative deterioration beyond this level could require an adjustment in the rating, depending on the reason for the deviation and the future prospects at the point of the review. S&P considers any upside movement in the rating unlikely in the immediate term. Unaudited Accounts S&P's analysis of Edwards UKCo 1 Ltd. is based on unaudited management accounts due to the unavailability of audited accounts. Standard & Poor's takes no responsibility for the substance of these unaudited management accounts or the contents of this document that use these unaudited accounts. S&P make no representation as to the accuracy or completeness of such accounts. Standard & Poor's expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document. The analysis presented in this document may well be affected by any change in the unaudited management accounts. EMI GROUP: Confirms Approach of Potential Bidders ------------------------------------------------- EMI Group PLC confirmed May 4, that it received a number of preliminary indications of interest to acquire the company. According to Wall Street Journal reporters, Daniel Thomas and Jessica Hodgson, although EMI didn't identify the potential bidders, recent reports have suggested that U.S. private-equity firm One Equity has approached it on a takeover that would value the company at about GBP3 billion. EMI also faces takeover interest from two other U.S. private equity firms, Fortress and Cerberus, Reuters reports, citing the Financial Times as its source. According to the report, all three private equity firms has sent letters expressing interest in buying EMI, and that the music group would open its books to all three bidders which are expected to make presentations to the board next week. The FT also said that EMI gave the three groups until May 23 -- the time of its annual results -- to make fully financed, formal offers. EMI shares went up 18.75 pence to 246.25 pence on the London Stock Exchange on May 4. EMI stated that there could be no certainty that any offer will ultimately be made. On March 2, EMI rejected Warner Music Group's GBP2.1 billion non-binding takeover bid, saying that the price of 260 pence per share in cash for EMI is inadequate. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. The company issued two profit warnings since January 2007. * * * As reported in the TCR-Europe on March 1, Standard & Poor's Ratings Services placed its ratings on Warner Music Group Corp., including the 'BB-' corporate credit rating, on CreditWatch with negative implications, following the company's statement that it is exploring a possible merger agreement with EMI Group PLC (BB- /Watch Neg/B), which EMI management has confirmed. According to a TCR-Europe report on Jan. 17, Moody's Investors Service downgraded EMI Group Plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. ENERGY MANAGEMENT: Claims Filing Period Ends May 31 --------------------------------------------------- Creditors of Energy Management Advisory Services Ltd. have until May 31 to send their names and addresses and particulars of their claims to: Matthew Colin Bowker Liquidator Jacksons Jolliffe 33 George Street Wakefield WF1 1LX England Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork were appointed joint liquidators of the company on April 26. Jackson Jolliffe Cork -- http://www.jjcork.co.uk/-- engages exclusively in business recovery and insolvency work and comprises certified and chartered accountants, licensed insolvency practitioners and business turnaround consultants, many having joined us from senior positions within National firms. EPICOR SOFTWARE: Prices US$200 Mil. of 2.375% Sr. Notes Offering ---------------------------------------------------------------- Epicor Software Corporation has priced its previously announced offering of US$200 million aggregate principal amount of 2.375% convertible senior notes due 2027. As part of the offering, the company has granted the underwriters a 30-day option to purchase up to an additional US$30 million aggregate principal amount of the notes solely to cover overallotments, if any. Assuming the repayment of its outstanding term loan, Epicor expects the offering to be accretive to its fiscal 2007 earnings per diluted share. The notes will pay interest semiannually at a rate of 2.375% per annum until May 15, 2027. The notes will be convertible, under certain circumstances, into cash or, at the Company's option, cash and shares of the company's common stock, at an initial conversion rate of 55.2608 shares of common stock per US$1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately US$18.10 per share. The initial conversion price represents a 30% premium over the last reported sale price of the company's common stock on May 2, 2007, which was US$13.92 per share. The notes priced on May 2, 2007. Epicor estimates that the net proceeds from this offering will be approximately US$193.2 million after deducting the underwriters' discounts and commissions and estimated offering expenses (or approximately US$222.3 million if the underwriters' over-allotment option is exercised in full). The offering is expected to close on May 8, 2007, subject to customary closing conditions. Epicor intends to use the net proceeds from the offering to repay in full the company's term loan outstanding under its credit facility. The balance of the net proceeds will be used for working capital, capital expenditures and other general corporate purposes, which may include funding acquisitions of businesses, technologies or product lines, although Epicor currently has no commitments or agreements for any such specific acquisition. Epicor may also use a portion of the remaining net proceeds to repurchase outstanding shares of its common stock. UBS Investment Bank and Lehman Brothers acted as joint book- running managers for the offering. Cowen and Company, Needham & Company, and Piper Jaffray served as co-managers for the offering. Copies of the prospectus and preliminary prospectus supplement relating to the offering may also be obtained from: UBS Securities LLC Attn: Prospectus Department 299 Park Avenue New York, NY, 10171, Tel: (212) 821-3000 -- or -- Lehman Brothers c/o Broadridge 1155 Long Island Avenue Edgewood, NY 11717 Fax: (631) 254-7268 Headquartered in Irvine, California, Epicor Software Corp. -- http://www.epicor.com/www/-- is a provider of enterprise resource planning, customer relationship management, and supply chain management software and solutions to mid-market companies worldwide. Epicor Software has worldwide locations in Australia, Canada, China, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, Singapore, Taiwan, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 23, 2007, Standard & Poor's Rating Services raised its corporate credit rating on Irvine, California-based Epicor Software Corp., to 'BB-' from 'B+'. The outlook is stable. The action reflects successful integration of the CRS Retail acquisition, continued cash flow generation, and substantially reduced leverage to about 1.8x in 2006, from 2.9x in 2005. FORD MOTOR: Navistar Files US$2 Billion Counter Claim ----------------------------------------------------- Navistar International Corp. has filed an amended complaint against Ford Motor Co. seeking more than US$2 billion in damages, Reuters reports. According to the source, Navistar's amended complaint stemmed from hints that Ford was planning to develop its own diesel engine for release prior to 2012. Navistar, through its International Truck and Engine Corp. operating company, has been the exclusive diesel engine supplier for Ford's Super Duty pickup trucks since 1979 and had launched a new 6.4L Power Stroke(R) for Ford's new Super Duty. Diesel Engine Litigation In a filing with the U.S. Securities and Exchange Commission, Ford disclosed that on January 2007, it filed a suit against the company seeking, among other things, reimbursement for warranty and related costs involving prior model-year diesel engines supplied by International Truck. On Feb. 26, 2006, the Navistar suspended production claiming that Ford stopped honoring the terms under which the engines were built. Ford sought a temporary restraining order from Judge John J. McDonald of the Circuit Court of Oakland County, Michigan. Judge McDonald issued an order on Feb. 28 that required International Truck to resume production and Ford to pay with no withholding until a hearing was held. Navistar entered into a consent injunction with Ford which Navistar's operating company will continue shipping 6.4L Power Stroke(R) diesel engines and Ford will pay, without deductions, for each engine. About Navistar International Corp. Based in Warrenville, Illinois, Navistar International Corp. (NYSE:NAV) -- http://www.nav-international.com/-- is the parent company of Navistar Financial Corp. and International Truck and Engine Corp. The company produces International brand commercial trucks, mid-range diesel engines and IC brand school buses, Workhorse brand chassis for motor homes and step vans, and is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV market. The company also provides truck and diesel engine parts and service sold under the International brand. A wholly owned subsidiary offers financing services. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. FORD MOTOR: U.S. Sales Decreased 13% to 228,623 in April -------------------------------------------------------- Ford Motor Co. disclosed in a regulatory filing with the Securities and Exchange Commission that the company's April U.S. sales totaled 228,623, down 13% compared with a year ago. "With April behind us, we remain focused on getting the word out about the strength of our new products, and our marketing offensive is moving into high gear," said Mark Fields, Ford's President of The Americas. "Customers are responding very positively to our new 'Ford Challenge' ads that pit Ford vehicles against the best of the competition, so we're accelerating our plans." Currently, Ford said it began airing two new F-Series truck ads starring Mike Rowe, creator and star of the Discovery Channel's hit show "Dirty Jobs." The ads demonstrate the clear advantages of Ford Tough trucks in safety, strength and capability. Ford's internal data show that the Ford Challenge campaign has generated a strong response in product favorability, purchase consideration and sales. Following the start of the successful "Fusion Challenge" ads in January, the Ford Fusion posted double-digit sales increases throughout the first quarter. Strong Crossover Growth Continues Although April sales for most products were lower than a year ago, new crossover utilities helped Ford increase its share of the industry's fastest growing category. Ford Edge sales were 9,134, and Lincoln MKX sales were 2,901. In addition, Land Rover introduced its first crossover utility, the LR2, and first month sales were 1,302. Total Ford Motor Company crossover sales were 28 percent higher than a year ago during April. "The success of our newest products - Ford Fusion, Edge, Lincoln MKX, Ford Super Duty and Ford Expedition - gives us encouragement that we're creating the products our customers really want, and we're beginning to stabilize our retail market share," Fields said. "Three years ago, 70 percent of new Ford Motor Company vehicles sold in the U.S. were trucks and traditional SUVs. Today, the balance is nearly 50 percent cars and crossovers, and 50 percent trucks and SUVs," Fields explained. "We will continue to introduce new crossovers and even more small cars in the U.S., as they represent the consumer growth segments going forward." About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3 billion of senior convertible notes due 2036. FORD MOTOR: Plans to Open Banking Unit in Russia, Aksakov Says -------------------------------------------------------------- A financial department of Ford Motor Company is mulling over plans to open a subsidiary bank in Russia, said Anatoly Aksakov, deputy chairman of the State Duma Committee for Credit Organizations and Financial Markets, RIA Novosti relates. According to the report, the Russian parliament member said he learned about the company's plan during a meeting with Ford representatives within the framework of the U.S.-Russia Business Council in Washington. Ford Russia President Henrik Nenzen earlier said the company intends to open seven new plants in Russia and reach annual production capacity of over one million cars after 2010. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4'. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's US$3-billion of senior convertible notes due 2036. GENERAL MOTORS: April Sales Down 2.2%; Rental Sales Down 36% ------------------------------------------------------------ General Motors Corporation reported that GM dealers in the United States delivered 311,687 vehicles in April, a reduction of 2.2% on a sales-day-adjusted basis. GM's April retail sales of 228,465 were up 3.6%, on a sales-day-adjusted basis. There were two fewer selling days in April this year. Fifteen different models showed a retail sales increase, reflecting the continuing strength of GM's new product portfolio. So far this year, daily rental sales of 13% of total sales accounted for the lowest percentage of total sales in five years. Daily rental sales were down 23,178 vehicles in April, or 36% on a sales-day-adjusted basis, compared with a year ago as mix and quality of share continued to improve significantly. Consistent with its turnaround strategy, GM has reduced daily rental sales by more than 83,000 vehicles in the first four months of 2007. "April sales were consistent with the pattern of the last few quarters -- retail sales up, daily rental down, and continued strength of our launch vehicles," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "We are particularly pleased with the Silverado and Sierra pickups, and from January to March this year we've seen more than a four point full-size pickup market share increase at the expense of Toyota, Ford and DCX. Pickup truck customers are telling us in today's environment they are shopping for value, fuel economy and warranty. GM wins on all three." Chevrolet Aveo, Impala, Silverado, Suburban, and Avalanche; Pontiac G6; Saturn Sky and VUE; GMC Sierra, Yukon XL and Canyon; Cadillac CTS, SRX, Escalade ESV and Escalade EXT all had April retail sales increases compared with a year ago on a sales-day- adjusted basis. Pontiac G5, Saturn Aura and Outlook and the GMC Acadia are newly-offered products and continue to contribute retail sales momentum. The GMC Acadia and Saturn Outlook had retail sales of more than 9,100 vehicles, pushing a significant retail increase in GM's mid-crossover segment. GM's total sales of more than 11,000 vehicles in this segment pushed monthly performance up 184%, on a sales-day-adjusted basis, compared with the same month last year. Total sales of Saturn vehicles were up 29 percent, GMC was up 17 percent and Cadillac was up 2% in April on a sales-day-adjusted basis. "As we continue to execute our North American marketing plans, we've seen positive results, including increased residual values for our products. For customers, this means better resale values for their GM car or truck," LaNeve added. "With new products such as the Buick Enclave, Cadillac CTS and Chevrolet Malibu still to come this year, we expect to build on this customer enthusiasm." Certified Used Vehicles April 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,622 units, down 11 percent from last April. Total year-to-date certified GM sales are 181,473 units, up 3% from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 36,625 sales, down nearly 10% from last April. Year-to-date sales for GM Certified Used Vehicles are 159,409 units, up 4% from the same period in 2006. Cadillac Certified Pre-Owned Vehicles posted April sales of 2,800 units, down 22% from last April. Saturn Certified Pre- Owned Vehicles sold 1,478 units in April, down 17%. Saab Certified Pre-Owned Vehicles sold 639 units, down 10% from last April, and HUMMER Certified Pre-Owned Vehicles sold 80 units, down 30%. "GM Certified Used Vehicles, the industry's top-selling certified brand, continues to set the pace for the category, with sales through April up more than 4 percent," said Mr. LaNeve. "April sales were impacted by having two less sales days than last year. Certified GM sales year-to-date are up over 3 percent from the same period last year." GM North America Reports April Production, 2007 Second-Quarter Production Forecast is Revised at 1.145 Million Vehicles In April, GM North America produced 335,000 vehicles (120,000 cars and 215,000 trucks). This is down 17,000 units or 5% compared to April 2006 when the region produced 352,000 vehicles (130,000 cars and 222,000 trucks). (Production totals include joint venture production of 15,000 vehicles in April 2007 and 24,000 vehicles in April 2006.) Additionally, the region's 2007 second-quarter production forecast is revised at 1.145 million vehicles (403,000 cars and 742,000 trucks), down 15,000 units or 1.3% from last month's guidance. GM also announced final 2007 first-quarter and unchanged 2007 second-quarter production forecast for its international regions. GM Europe - GM Europe produced 511,000 vehicles in the first- quarter of 2007. In the first-quarter of 2006 the region built 494,000 vehicles. The region's 2007 second-quarter production forecast remains unchanged at 473,000 vehicles. In the second- quarter of 2006 the region built 495,000 vehicles. GM Asia Pacific - The region built 544,000 vehicles in the first-quarter of 2007. In the first-quarter of 2006 the region produced 472,000 vehicles. GM Asia Pacific's 2007 second- quarter production forecast remains unchanged at 568,000 vehicles. In the second-quarter of 2006 the region built 482,000 vehicles. GM Latin America, Africa and the Middle East - The region built 222,000 vehicles in the first quarter of 2007. In the first quarter of 2006 the region produced 194,000 vehicles. The region's 2007 second-quarter production forecast is unchanged at 233,000 vehicles. In the second quarter of 2006 the region built 206,000 vehicles. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. GENERAL MOTORS: Earns US$62 Million in Quarter Ended March 31 ------------------------------------------------------------- General Motors Corp. reported net income of US$62 million, including special items, in the first quarter ended March 31, 2007, compared with net income of US$602 million, in the year-ago quarter. Results are preliminary and may be revised prior to actual filing of GM's first quarter report on Form 10-Q. The decline in reported GM earnings is more than accounted for by losses in the residential mortgage business of GMAC Financial Services, driven by continued weakness in the U.S. nonprime mortgage sector. In addition, last year's results included a one-time after tax gain of US$395 million due to the sale of a portion of GM's equity ownership position in Suzuki Motors. The reported results for the first quarter of 2007 include unfavorable special items totaling US$32 million after tax related largely to restructuring actions in Europe and Asia Pacific, offset in part by a favorable item related to workforce attrition costs for previously divested components plants. "The first quarter of 2007 marked another quarter of continued progress in GM's global automotive operations. We were able to expand vehicle sales and improve automotive profitability based on the progress in our turnaround initiatives in North America and Europe and our expansion strategy for key growth markets like China, Russia and South America," said GM chairman and chief executive officer, Rick Wagoner. "We continue to see progress on the automotive bottom line as we implement the strategies laid out two years ago." Excluding special items, GM posted adjusted net income of US$94 million, compared to adjusted net income of US$350 million in the first quarter of 2006. Total revenue for the first quarter of 2007 was US$43.9 billion, down from US$52.4 billion, almost entirely due to GMAC revenue no longer being included in GM's consolidated results. Following the 51 percent equity sale of GMAC in late 2006, GM is reporting its 49 percent ownership interest using the equity accounting method. Automotive revenue for the first quarter of 2007 was US$42.9 billion, down slightly from US$43.6 billion in the first quarter of 2006. GM Automotive Operations Net income from GM's global automotive operations totaled US$304 million on an adjusted basis, in the first quarter of 2007, compared to US$40 million in the year-ago quarter. GM sold an all-time first quarter record 2.26 million cars and trucks in the first quarter of 2007, up 3 percent, or 67,000 units, over the first quarter of 2006. Sales in the GM Asia Pacific region grew more than 20 percent; GM Latin America, Africa and Middle East grew 17 percent, and GM Europe grew 6 percent. GM's all-time sales record was achieved despite challenging market conditions in the U.S. largely due to volatile fuel prices and contraction in the housing market. GMAC GMAC posted a net loss of US$305 million in the first quarter of 2007, compared to net income of US$495 million in the year-ago period. For the first quarter, GM recognized a net loss of US$115 million associated with its 49 percent ownership of GMAC, including the accrual of dividends on GMAC preferred membership interests and certain tax benefits realized. GMAC results were significantly impacted by a net loss of US$910 million at Residential Capital LLC due to continued pressures in the U.S. mortgage market. GMAC's first quarter net income generated by auto finance, insurance and other operations was US$605 million, more than double the earnings generated by these same operations in the first quarter of 2006. Cash and Liquidity GM generated adjusted automotive operating cash flow of US$300 million for the first quarter of 2007, an improvement of US$1.5 billion year-on-year, with all four regions reporting improvement. Cash, marketable securities, and readily-available assets of the Voluntary Employees' Beneficiary Association trust totaled US$24.7 billion at March 31, 2007, up from US$21.6 billion on March 31, 2006, but down from the year-end 2006 total of US$26.4 billion. At March 31, 2007, the company's balance sheet showed US$185.2 billion in total assets, US$188.4 billion in total liabilities, US$1.1 billion in minority interests, resulting in a US$4.3 billion total stockholders' deficit. About General Motors General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the US$1.5 billion secured term loan of General Motors Corp. GENERAL TRADING: Creditors' Meeting Slated for May 16 ----------------------------------------------------- Creditors of General Trading Corporation Ltd. will meet at 11:30 a.m. on May 16 at: 29-30 Fitzroy Square London W1T 6ET England Phillip Anthony Roberts will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require. HANDMOUNT LTD: Names Malcolm Edward Fergusson Liquidator -------------------------------------------------------- Malcolm Edward Fergusson of Fergusson & Co. Ltd. was appointed liquidator of Handmount Ltd. on April 27 for the creditors' voluntary winding-up procedure. The company can be reached at: Handmount Ltd. Unit 10 Hurworth Road Aycliffe Industrial Park Newton Aycliffe DL5 6UD England Tel: 01325 321 821 Fax: 01325 319 283 HEALING TOUCH: Appoints Martin Williamson as Liquidator ------------------------------------------------------- Martin Williamson of DSi Services was appointed liquidator of Healing Touch Ltd. on May 1 for the creditors' voluntary winding-up proceeding. The company can be reached at: Healing Touch Ltd. Unit 25 Darwin Centre Middle Mall Shrewsbury SY1 1BW England Tel: 01743 241 994 HINDLEY ELEVATORS: Creditors' Meeting Slated for May 16 ------------------------------------------------------- Creditors of Hindley Elevators Ltd. will meet at 10:30 a.m. on May 16 at: Kilhey Court Hotel Chorley Road Wigan WN1 2XN England Creditors who want to vote at the meeting have until noon on May 15 to submit their proxy forms together with particulars of their claims or of any security at the office of: T.H. Associates Towngate House 116-118 Towngate Leyland Preston PR25 2LQ England ISLE OF CAPRI: Financial Restatements Delay 10-Q Filing with SEC ---------------------------------------------------------------- Isle of Capri Casinos Inc. stated in the NASDAQ Listing Qualifications Panel hearing held on April 26, 2007, that the company's failure to file its Form 10-Q for the third fiscal quarter ended Jan. 28, 2007, by the March 9 due date resulted from the company's restatement of its financial statements for the fiscal years ended April 25, 2004; April 24, 2005 and April 30, 2006, and the quarterly results for fiscal 2005 and 2006 included therein, and for the first two quarters of fiscal 2007. The company's failure to make a timely quarterly filing meant that Isle of Capri Casinos is not in compliance with the filing requirements for continued listing of its common stock on the NASDAQ Global Select Market as set forth in Marketplace Rule 4310(c)(14). On April 25, 2007, NASDAQ notified the company that the Quarterly Report of Form 10-Q that the company filed on April 18, 2007 did not cure the company's deficiency under Marketplace Rule 4310(c)(14) because the company's independent auditors had not reviewed it. The company expects to receive the decision of the NASDAQ Listing Qualifications Panel within a few weeks, regarding its request for an exception giving it time for its auditors to complete their review and for the company to amend the Quarterly Report on Form 10-Q to meet the requirements of Marketplace Rule 4310(c)(14). In the meantime, the company's common stock will remain listed on the NASDAQ Global Select Market. About Isle of Capri Based in Biloxi, Missippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle of Capri Casinos in connection with its implementation of the new Probability-of-Default and Loss-Given- Default rating methodology for the Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of the company's debts including a LGD5 rating on its 9% Sr. Sub. Notes, suggesting debt holders will experience a 76% loss in the event of a default. As reported in the Troubled Company Reporter on Nov. 8, 2006, Standard & Poor's Ratings Services affirmed ratings on Isle of Capri Casinos Inc., including its 'BB-' corporate credit rating. At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed on Oct. 4, 2006, with negative implications. The outlook is stable. ISLE OF CAPRI: Will Continue Lucaya Resort Casino Operations ------------------------------------------------------------ The Isle of Capri Casinos Inc. told the St. Louis Business Journal that it would continue its casino operations at Our Lucaya Resort in Freeport, Bahamas. According to The Business Journal, the Isle of Capri has been the sole casino operator on the Grand Bahama Island since December 2003. The Isle of Capri had disclosed that it would terminate its lease of the property on June 1. The Business Journal relates that the Isle of Capri is working with the Freeport government officials to complete an agreement for the continuation of the firm's casino operations in the resort. Isle of Capri President and Chief Operating Officer Tim Hinkley said in a statement, "We appreciate the diligent efforts put forth by the Ministry of Tourism, the Gaming Board of the Bahamas, the Hotel Corporation and government officials as we worked together to complete this agreement." Based in Biloxi, Miss., Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * Moody's Investors Service affirmed its Ba3 Corporate Family Rating on Isle of Capri Casinos in connection with its implementation of the new Probability-of-Default and Loss-Given- Default rating methodology for the Gaming, Lodging & Leisure sector. Moody's assigned LGD ratings to four of the company's debts including a LGD5 rating on its 9% Sr. Sub. Notes, suggesting debt holders will experience a 76% loss in the event of a default. As reported in the Troubled Company Reporter on Nov. 8, 2006, Standard & Poor's Ratings Services affirmed ratings on Isle of Capri Casinos Inc., including its 'BB-' corporate credit rating. At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed on Oct. 4, 2006, with negative implications. S&P said the outlook is stable. JAMES SHERATON: Creditors' Meeting Slated for May 15 ---------------------------------------------------- Creditors of James Sheraton Ltd. will meet at noon on May 15 at: Clocktower House Trueman Street Liverpool L3 2BA England Creditors who want to vote at the meeting have until noon on May 14 to submit their proxy forms together with particulars of their claims or of any security at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on May 11 at: Milner Boardman & Partners Century House Ashley Road Hale Cheshire WA15 9TG England Milner Boardman -- http://www.milnerboardman.co.uk/-- provides financial accounting and business advisory services. KL FINISHERS: Joint Liquidators Take Over Operations ---------------------------------------------------- Richard Frank Simms and Martin Richard Buttriss were appointed joint liquidators of KL Finishers Ltd. on April 26 for the creditors' voluntary winding-up proceeding. The company can be reached at: KL Finishers Ltd. 35 Crayford Road Acorn Industrial Park Dartford DA1 4AL England Tel: 01322 555 165 Fax: 01322 555 785 LEA VALLEY: Ninos Koumettou Leads Liquidation Procedure ------------------------------------------------------- Ninos Koumettou of Alexander Lawson Jacobs was appointed liquidator of Lea Valley Motors Ltd. on April 26 for the creditors' voluntary winding-up procedure. The company can be reached at: Lea Valley Motors Ltd. Second Avenue Enfield London N18 2PG England Tel: 020 8345 5148 PRIMUS TELECOMMS: March 31 Balance Sheet Upside-Down by US$472MM ---------------------------------------------------------------- PRIMUS Telecommunications Group, Incorporated reported total assets of US$432.6 million and total liabilities of US$904.8 million, resulting in a total stockholders' deficit of US$472.3 million as of March 31, 2007. The principal amount of PRIMUS's long-term debt obligations as of March 31, 2007 was US$688 million, up from US$640 million at Dec. 31, 2006. For the first quarter ended March 31, 2007, its net revenue was US$228 million, down from US$241 million in the prior quarter and US$269 million in the first quarter 2006. The company reported a net loss for the quarter of US$3 million, as compared with a net loss of US$2 million in the prior quarter and a net loss of US$16 million in the first quarter 2006. "We are pleased to have met our expectations for Adjusted EBITDA in the first quarter, despite expected revenue declines driven largely by seasonality and the loss of low-margin/low-growth businesses," stated K. Paul Singh, chairman and chief executive Officer. "Significantly, our improving financial performance over the past year positioned us to execute successfully a number of important liquidity-enhancing initiatives during the quarter. Collectively, these initiatives have enabled PRIMUS to: (1) raise over US$75 million in cash to fund fully our business plan for 2007 and beyond; and (2) refinance obligations that extend the nearest material debt maturity to mid-year 2009. As a result of these accomplishments, PRIMUS now has the financial flexibility to make additional investments in our higher margin and most successful growth businesses as well as to consider potentially attractive acquisitions. Any combination of these actions would be undertaken with an initial goal of increasing the rate of revenue growth and contribution from broadband, VOIP, local, data and hosting services." "Our focus will continue to be on growing the high-margin broadband, VOIP, local, data and hosting service initiatives that are performing well with an annualized revenue run-rate of approximately US$200 million. That growth has been accomplished with sales and marketing investment levels constrained by available cash. With our newly expanded resources, we now have the opportunity to consider accelerated growth strategies in these high-margin products. "As previously stated, we expect overall revenue to decline in 2007 as compared to 2006, particularly as we continue to prune or to divest low-margin, or non-core revenue streams. Our objective, however, is to generate contribution from growth products such as broadband, VOIP, local, data and hosting in excess of the contribution loss from the decline in legacy voice and dial-up ISP products." Sale of Australian Domain The company sold its Australian domain name business in the first quarter 2007. From an accounting perspective, the sale has been treated as a "discontinued operation." In 2006, the revenue and net income from these operations was US$4 million and US$1 million, respectively. Liquidity and Capital Resources PRIMUS ended the first quarter 2007 with a cash balance of US$111 million, including US$9 million of restricted funds, as compared to US$73 million, including US$8 million of restricted funds, as of Dec. 31, 2006. During the first quarter, a net US$7 million in cash was used by operating activities. Free Cash Flow for the first quarter 2007 was negative US$14 million, as compared with negative US$5 million in the prior quarter and Free Cash Flow neutral in the first quarter 2006. To improve liquidity, the company had a private sale in February 2007 of US$24 million principal amount of new 14.25% Second Lien Notes for cash, the accompanying private exchange of an additional US$33 million principal amount of 14.25% Second Lien Notes for US$41 million principal amount of existing 12.75% Senior Notes; the private sale of US$51 million principal amount of 14.25% Second Lien Notes for cash in March 2007; the refinancing of a USUS$28 million Canadian credit facility scheduled to mature in April 2008 with a new US$35 million facility with a March 2012 maturity; the refinancing of an US$8 million Australian fiber purchase agreement with an original maturity of March 2007 to amortize over a two-year period; and the sale of a domain registration business unit in Australia for about US$6 million in net cash proceeds. About PRIMUS Telecommunications Based in McLean, Virginia, PRIMUS Telecommunications Group Inc. (NASDAQ: PRTL) -- http://www.primustel.com/-- offers international and domestic voice, voice-over-Internet protocol, Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the U.S., Canada, Australia, the U.K. and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including about 350 points-of-presence throughout the world, ownership interests in undersea fiber optic cable systems, 16 carrier-grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. ROEBUCK ELECTRONIQUE: Creditors' Meeting Slated for May 15 ---------------------------------------------------------- Creditors of Roebuck Electronique Ltd. will meet at 11:30 a.m. on May 15 at: Wind In The Willows Hotel Derbyshire Level Glossop Derbyshire SK13 7PT England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on May 11 at: Cresswall Associates Ltd. 168 Hesketh Lane Tarleton Preston Lancashire PR4 6AT England ROYAL & SUN: Policyholders Have Until May 22 to Cancel Insurance ---------------------------------------------------------------- Sun Alliance Insurance Overseas Limited has transferred all its rights, obligations and liabilities under insurance policies written by it to Royal & Sun Alliance Insurance plc. The transfer, sanctioned by the High Court of Justice in England and Wales, became effective on March 31. Policyholders whose insurance policies have been transferred to Royal & Sun Alliance may cancel their policy, if they want to do so, on or before May 22. In the event of cancellation, Royal & Sun Alliance shall refund to such policyholders the proportion of any prepaid premium, which relates to the unexpired term of their policy. The company can be reached at: Royal & Sun Alliance Insurance plc St. Mark's Court Chart Way Horsham West Sussex RH12 1XL England About Royal & Sun Alliance Headquartered in London, England, Royal & Sun Alliance Insurance Group PLC -- http://www.royalsunalliance.com/-- is a FTSE 100 company, listed on the London Stock Exchange and in New York. The group consists of three regions -- U.K., Scandinavia, and International -- with operations in 30 countries, providing general insurance products to over 20 million customers worldwide. In Latin America, it operates in Brazil, Chile, Colombia, Mexico, Uruguay, and Venezuela. In Asia, the company operates in Hong Kong, Singapore, and Saudi Arabia. * * * As of Feb. 22, Royal & Sun Alliance Insurance Group PLC carries Moody's Ba1 preferred stock rating. SEW-MON LTD: Creditors' Meeting Slated for May 16 ------------------------------------------------- Creditors of Sew-Mon Ltd. will meet at noon on May 16 at the offices of: Parkin S. Booth & Co. 24 Trinity Square Llandudno LL30 2RH Wales Robert M. Rutherford of Parkin S. Booth & Co. will furnish creditors with information concerning the company's affairs free of charge as they may reasonably require during the period before the day of the meeting. SHAW GROUP: To Redeem Up to US$15.2 Million in Outstanding Notes ---------------------------------------------------------------- The Shaw Group Inc. will redeem all remaining outstanding 10-3/4% Senior Notes due 2010. As of April 30, 2007, the aggregate principal amount of the remaining outstanding Senior Notes was US$15,173,000. Pursuant to the terms of the 10-3/4% Senior Notes Indenture, the Senior Notes will be redeemed by Shaw on May 31, 2007 at a redemption price equal to 105.375% of the outstanding principal amount of the outstanding Senior Notes (US$1,053.75 per US$1,000 in principal amount of the Senior Notes) plus accrued interest of US$22.67 per US$1,000 in principal amount of the Senior Notes. Shaw will fund the redemption of the Senior Notes with cash on hand. The company expects to record a pre-tax charge of approximately US$1.1 million, US$0.7 million after taxes in the third quarter of fiscal 2007 as a result of the early retirement of remaining outstanding 10-3/4% Senior Notes. Shaw issued the US$253 million face amount, 10-3/4% Senior Notes due 2010 in a private offering on March 17, 2003. In May 2005, Shaw redeemed US$237,856,000 aggregate principal amount of Senior Notes, 94% of original issuance, pursuant to a tender offer. The company paid approximately US$266.8 million to redeem the Senior Notes, plus accrued interest, and made consent payments totaling approximately US$5.9 million. Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the US$100 million increase to the company's revolving credit facility. SHEPPINGDEN LTD: Creditors' Meeting Slated for May 16 ----------------------------------------------------- Creditors of Sheppingden Ltd. will meet at 10:30 a.m. on May 16 at the offices of: Bennett Verby 7 St. Petersgate Stockport Cheshire SK1 1EB England Creditors who want to vote at the meeting have until noon on May 15 to submit their proxy forms together with particulars of their claims or of any security at the said address. A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on May 14. SKYEPHARMA PLC: Posts GBP77.7 Million Net Loss in Full Year 2006 ---------------------------------------------------------------- Skyepharma PLC released its financial results for the year ended Dec. 31, 2006. Skyepharma posted GBP77.7 million in net losses against GBP43 million in revenues for the year ended Dec. 31, 2006, compared with GBP50.9 million in net losses against GBP50.8 million revenues for the same period in 2005. At Dec. 31, 2006, the Group's balance sheet showed GBP107.7 million in total assets, GBP156.1 million in total liabilities and GBP48.4 million to stockholders' deficit. The company's balance sheet at Dec. 31, 2006, also showed strained liquidity with GBP27.5 million in current assets available to pay GBP42.8 million in total liabilities coming due within the next 12 months. "The past year was one of significant transition that has established a new direction for SkyePharma," Dr. Jerry Karabelas, Non-Executive Chairman, said. "The new management team has successful completed a fundamental restructuring of the Company's operations and finances and SkyePharma is now well placed to move forward. Our key priorities in the coming year will be to complete the US clinical trial program for our lead asthma product, Flutiform(TM), and to leverage the Company's skills and technologies in oral and inhalation drug delivery." Financing Ahead of the sale of the Injectable Business, Skyepharma arranged a royalty and asset based financing facility from Christofferson Robb & Co. for approximately GBP35 million. Upon completion of the sale in March 2007, the Group also completed a refinancing of the Paul Capital facility and an equity placing for GBP14.8 million (net of costs). This financial restructuring together with the consideration received for the Injectable Business has greatly improved the Group's cash position and will result in a substantial reduction of the cost of the Paul Capital finance charges in 2007 compared with 2006. In 2007, Skyepharma will commence work on refinancing the GBP89.6 million convertible bonds so that the earliest redemption dates are extended in order to more closely match the liquidity profile of the Group. Going Concern Doubt The Group has in issue GBP69.6 million bonds which may be converted into Ordinary Shares at 95 pence per share, and may be called for repayment by the bond holders at par during May 2009 and GBP20 million bonds which may be converted into Ordinary Shares at 58 pence per share, and may be called for repayment by the bond holders at par during the following year. The Directors intend to seek to refinance these bonds well before May 2009 in order to ensure that the earliest repayment dates are extended to match more closely the Group's expected cash inflows. The ability to refinance the convertible bonds in a timely and cost-effective manner will depend upon market conditions as well as continued progress with the Group's business, especially the development of Flutiform(TM). Although the application of drug delivery technologies to known molecules is lower risk than drug development, there can be no absolute certainty that Flutiform(TM) will successfully complete development and be launched in the United States in 2009. Nevertheless, the Directors have a reasonable expectation that these risks can be managed to a successful outcome. Accordingly, following the financial restructuring completed in March 2007, and having made an assessment of the working capital requirements for the next twelve months, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and have, therefore, prepared financial information on a going concern basis. Outlook In 2007, since new products are planned to be launched towards the end of the year, revenues are unlikely to show a significant increase compared with 2006. Skyepharma expects that there will be some reduction in sales, general and administration costs compared with 2006, but these savings are likely to be more than offset by the planned costs of completing the Phase III clinical trials for Flutiform(TM) during 2007. In 2008, as the research and development costs scale back to a more normal level and pipeline products come to market, the Group's objective is to move into operating profit (before finance costs). The Group has set a target to become profitable (after tax) in 2009. Its goal remains to deliver long-term value for shareholders. Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now 12 approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled, and topical delivery supported by advanced solubilization capabilities. SKYEPHARMA PLC: Delisting American Depositary Shares from NASDAQ ---------------------------------------------------------------- SkyePharma PLC will delist its American Depositary Shares, each representing the right to receive ten ordinary shares of ten pence each of SkyePharma, from The NASDAQ Stock Market and, pursuant to the newly adopted Rule 12h-6(a) under the U.S. Securities Exchange Act of 1934, deregister and terminate SkyePharma's reporting obligations under Sections 13(a) and 15(d) of Exchange Act. SkyePharma's Board of Directors authorized this action based on its assessment that (a) continued compliance with the rules of the U.S. Securities Exchange Commission and NASDAQ, in particular Section 404 of the Sarbanes-Oxley Act of 2002, would be expensive and burdensome for a company such as SkyePharma considering the limited benefits it might realize and (b) all investors in the Ordinary Shares and ADSs of SkyePharma are accorded protection by SkyePharma's continued compliance with the rules of the London Stock Exchange, on which it will maintain its listing, the Combined Code and other U.K. regulations. In accordance with SEC rules and the rules of NASDAQ, SkyePharma has provided written notice to NASDAQ of its intent to delist. SkyePharma intends to file a Form 25 with the SEC on May 14, 2007 to effect the delisting. The delisting will be effective ten days after filing the Form 25, unless the Form 25 is earlier withdrawn by SkyePharma. SkyePharma reserves the right to delay the filing of the Form 25 or withdraw the Form 25 for any reason prior to its effectiveness. SkyePharma intends to file a Form 15F with the SEC to deregister and terminate its reporting obligations under Section 13(a) and 15(d) of the Exchange Act as soon as practicable following the later of the effectiveness of the delisting and the coming into force of new Rule 12h-6 on June 4. The deregistration will be effective 90 days after the filing, unless the Form 15F is earlier withdrawn by SkyePharma. SkyePharma reserves the right to delay the filing of the Form 15F or withdraw the Form 15F for any reason prior to its effectiveness. SkyePharma has not arranged for the listing of its ADSs or ordinary shares on another national securities exchange or for the quotation of its ordinary shares in a quotation medium in the United States. SkyePharma intends to maintain its American Depositary Receipt facility relating to the ADSs with The Bank of New York. The ADSs will trade over-the-counter in the United States. "The US remains a very important market for SkyePharma, both as a market for our products and for investors in our Company, Frank Condella, Chief Executive Officer of Skyepharma PLC, said. "However, the time and expense associated with maintaining a second listing in the US is not cost effective, given that the vast majority of our trading volume and liquidity is on the London Stock Exchange. This move will save costs and enable management to spend more time in developing the business." Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now 12 approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled, and topical delivery supported by advanced solubilisation capabilities. Skyepharma posted GBP77.7 million in net losses against GBP43 million in revenues for the year ended Dec. 31, 2006, compared with GBP50.9 million in net losses against GBP50.8 million revenues for the same period in 2005. At Dec. 31, 2006, the company's balance sheet showed GBP107.7 million in total assets, GBP156.1 million in total liabilities and GBP48.4 million to stockholders' deficit. The company's balance sheet at Dec. 31, 2006, also showed strained liquidity with GBP27.5 million in current assets available to pay GBP42.8 million in total liabilities coming due within the next 12 months. Going Concern Doubt The Group has in issue GBP69.6 million bonds which may be converted into Ordinary Shares at 95 pence per share, and may be called for repayment by the bond holders at par during May 2009 and GBP20 million bonds which may be converted into Ordinary Shares at 58 pence per share, and may be called for repayment by the bond holders at par during the following year. The Directors intend to seek to refinance these bonds well before May 2009 in order to ensure that the earliest repayment dates are extended to match more closely the Group's expected cash inflows. The ability to refinance the convertible bonds in a timely and cost-effective manner will depend upon market conditions as well as continued progress with the Group's business, especially the development of Flutiform(TM). Although the application of drug delivery technologies to known molecules is lower risk than drug development, there can be no absolute certainty that Flutiform(TM) will successfully complete development and be launched in the United States in 2009. Nevertheless, the Directors have a reasonable expectation that these risks can be managed to a successful outcome. Accordingly, following the financial restructuring completed in March 2007, and having made an assessment of the working capital requirements for the next twelve months, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and have, therefore, prepared financial information on a going concern basis. SOLUTIA INC: March 31 Balance Sheet Upside-Down by US$1.3 Bil. -------------------------------------------------------------- Solutia Chapter 11 Debtors Unaudited Statement of Consolidated Financial Position As of March 31, 2007 ASSETS Cash US$26,000,000 Trade Receivables, net 195,000,000 Account Receivables-Unconsolidated Subsidiaries 77,000,000 Inventories 201,000,000 Other Current Assets 245,000,000 -------------- Total Current Assets 744,000,000 Property, Plant and Equipment, net 661,000,000 Investments in Subsidiaries and Affiliates 571,000,000 Intangible Assets, net 100,000,000 Other Assets 59,000,000 -------------- Total Assets US$2,135,000,000 LIABILITIES AND SHAREHOLDERS' DEFICIT Accounts Payable US$205,000,000 Short Term Debt 975,000,000 Other Current Liabilities 146,000,000 -------------- Total Current Liabilities 1,326,000,000 Other Long-Term Liabilities 193,000,000 -------------- Total Liabilities not Subject to Compromise 1,519,000,000 Liabilities Subject to Compromise 1,922,000,000 Shareholders' Deficit (1,306,000,000) -------------- Total Liabilities & Shareholders' Deficit US$2,135,000,000 Solutia Chapter 11 Debtors Unaudited Consolidated Statement of Operations For the Month Ended March 31, 2007 Total Net Sales US$215,000,000 Total Cost Of Goods Sold 189,000,000 -------------- Gross Profit 26,000,000 Total MAT Expense 18,000,000 -------------- Operating Income (Loss) 8,000,000 Equity Earnings from Affiliates 3,000,000 Interest Expense, net (4,000,000) Other Income, net 4,000,000 Loss on Debt Modification (7,000,000) Reorganization Items: Professional fees (6,000,000) Employee severance and retention costs 0 Other 0 -------------- (6,000,000) -------------- Loss Before Taxes (2,000,000) Income tax expense (benefit) 1,000,000 -------------- Net Loss (US$3,000,000) Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: Gets Open-Ended Lease Decision Deadline ---------------------------------------------------- The Honorable Prudence Carter Beatty of the U.S. Bankruptcy Court for the Southern District of New York gave Solutia Inc. and its debtor-affiliates authority to assume or reject unexpired leases until the 10th day prior to the confirmation hearing of any modified plan. The TCR-Europe on April 30 relates that as of April 18, 2007, the Debtors are parties to approximately 30 unexpired non- residential real property leases, which the Debtors use in connection with their operations throughout the world. Jonathan S. Henes, Esq., at Kirkland & Ellis LLP, in New York, informed the Court that many of the Debtors' offices, from which they conduct key aspects of their operations, are located on premises subject to certain of the unexpired leases. The unexpired leases are integral to the continued operation of the Debtors' businesses and constitute valuable assets of the estates, Mr. Henes said. According to Mr. Henes, the Debtors are currently actively working with their stakeholders towards finalizing a modified Plan of Reorganization, which they believe will contemplate the same assumption and rejection procedures outlined in the Plan for the unexpired leases. He explained that until the modified Plan is finalized, the Debtors will not be in a position to make a final determination to assume or reject the unexpired leases. Mr. Henes assured the Court that the Debtors are current under theUnexpired Leases and have the financial wherewithal to continue tomake all payments under the unexpired leases. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Allen E. Grimes, III, Esq., at Dinsmore & Shohl, LLP and Conor D. Reilly, Esq., at Gibson, Dunn & Crutcher, LLP. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. (Solutia Bankruptcy News, Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SULLIVAN BUSES: Creditors' Meeting Slated for May 16 ---------------------------------------------------- Creditors of Sullivan Buses (South) Ltd. will meet at 11:00 a.m. on May 16 at: The Kelmanson Partnership AVCO House 6 Albert Road Barnet Herts EN4 9SH England A list of names and addresses of the company's creditors will be available for inspection free of charge between 10:00 a.m. and 4:00 p.m. on May 14 at The Kelmanson Partnership. SUPERSLEEP LTD: Creditors' Meeting Slated for May 15 ---------------------------------------------------- Creditors of Supersleep Ltd. will meet at 10:30 a.m. on May 15 at: Nottingham Watson Ltd. 15 Highfield Road Hall Green Birmingham B28 0EL England A list of names and addresses of the company's creditors will be available for inspection free of charge on May 11 at the ofices of Nottingham Watson Ltd. UEC HOLDINGS: Hires Liquidators from CLB Coopers ------------------------------------------------ Mark Terence Getliffe and Diane Elizabeth Hill of CLB Coopers were appointed joint liquidators of UEC Holdings Ltd. (formerly U.E.C. Group Ltd.) on April 17 for the creditors' voluntary winding-up proceeding. The company can be reached at: UEC Holdings Ltd. Rossfield Road Ellesmere Port CH65 3BS England Tel: 0151 355 0111 UPSTAIRS DOWNSTAIRS: Brings In Liquidators from Wilson Field ------------------------------------------------------------ Lisa Hogg and Claire Foster of Wilson Field were appointed joint liquidators of Upstairs Downstairs Bathrooms & Kitchens Ltd. on April 23 for the creditors' voluntary winding-up proceeding. The company can be reached at: Upstairs Downstairs Bathrooms & Kitchens Ltd. Abingdon Road Nuffield Industrial Estate Poole BH17 0UG England Tel: 01202 460 470 Fax: 01202 773 477 VISTEON CORP: March 31 Balance Sheet Upside-Down by US$106 Mil. --------------------------------------------------------------- Visteon Corporation reported a net loss of US$153 million on total sales of US$2.93 billion for the first quarter ended March 31, 2007, compared with net income of US$3 million on total sales of US$2.96 billion for the same period in 2006. Results for the first quarter of 2007 included US$41 million of expenses reimbursable from the 400 million escrow account funded by Ford and non-cash asset impairments of US$50 million. Results for the first quarter of 2006 included US$9 million of restructuring expenses that qualified for reimbursement from the escrow account. "We continue to make progress implementing our restructuring, improvement and growth plan, despite North American production declines," said Michael F. Johnston, chairman and chief executive officer. "We anticipated this environment, and we have taken the necessary steps to ensure we have the financing and flexibility we need to continue our momentum." Total sales for first quarter 2007 totaled US$2.93 billion. First quarter 2007 product sales were US$2.8 billion, down slightly from first quarter 2006 as favorable currency and increased sales in Europe and Asia were offset by lower production volumes, principally in North America. Services revenues of US$130 million decreased US$15 million from the same period in 2006. Cash used by operating activities for the first quarter of 2007 was US$131 million compared with cash provided by operating activities of US$32 million in the same period a year ago. First quarter 2007 cash flow was impacted by normal seasonal factors, customer and geographic sales mix, the change in payment terms from Ford in North America and operating performance. Capital expenditures for the first quarter of 2007 of US$64 million were US$21 million lower than the same period a year ago. Free cash flow for the first quarter of 2007 was negative US$195 million, compared with negative US$117 million in the same period of 2006. As of March 31, 2007, cash balances totaled US$872 million as compared to US$1.057 billion at Dec. 31, 2006. Total debt of US$2.2 billion as of March 31, 2007 was essentially unchanged from year-end 2006. Visteon reached agreement to sell certain chassis operations in Germany, Poland and Brazil to Special Situations Venture Partner II LP in March 2007. On April 30 the European facilities were transferred to SSVP. Driveline assets located in Visteon's Sao Paulo, Brazil facility will be transferred in the second half of 2007. "With the completion of these chassis divestitures, half of the actions we committed to take in our multi-year plan are complete," said Don Stebbins, president and chief operating officer. "By addressing non-core and underperforming assets we continue to enhance our already strong global footprint, as we focus on our core product areas and position Visteon for profitable growth." At March 31, 2007, the company's balance sheet showed US$6.84 billion in total assets, US$6.68 billion in total liabilities and US$263 million in minority interest, resulting in a US$106 million total stockholders' deficit. About Visteon Corp. Headquartered in Van Buren Township, Mich., Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has more than 170 facilities in 24 countries and employs around 50,000 people. * * * As reported in the Troubled Company Reporter on April 10, 2007, Fitch Ratings has taken these actions regarding the ratings of Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. * Menzies Chartered Accountants Merges With Callingham Crane ------------------------------------------------------------ Menzies Chartered Accountants announced April 13, its merger with accountancy firm Callingham Crane. The move enables Menzies to expand and further develop its expertise in Private Client and Wealth Management work, in particular trusts and tax planning. Menzies' existing Private Client service will benefit from Callingham Crane's experience and long-standing reputation in landed estates and trust administration work. The merger will enhance Menzies' Private Client service and is expected to provide the firm with a competitive edge over South East rivals. Mike Sands, Senior Partner at Menzies, sees Wealth Management as a key area for growth and investment but believes the merger will deliver mutual benefits to both sets of clients: "I am confident that Callingham Crane's business clients will benefit from our corporate expertise and resources. At the same time the increased capabilities in personal tax and wealth management as a result of the merger will enable us to establish in Leatherhead a centre of excellence for Private Client work in the South East," Mr. Sands explained. Menzies Partner Penny Bates will assume responsibility for the strategic growth and development of the firm's expanded Private Client service, working with Callingham Crane's Peter Earle and David Barratt, who will continue to advise. The office will be known as Menzies Callingham Crane and will be lead by Managing Partner of the Leatherhead office, Steve Mitchison. The combined firm will also be relocating to its new office at Ashcombe House, 5 The Crescent, Leatherhead. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (214) 1,756 293 BELGIUM ------- City Hotels CITY.BR (7) 210 (15) Hamon S.A. HAMO (12) 236 (58) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (8) 106 (35) Arbel PA.ARB (116) 194 (94) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Charbo De France (3,872) 4,738 (2,868) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Dollfus Mieg & Cie S.A. DS (16) 143 (45) Euro Computer System (110) 682 377 Genesys S.A. GNS.PA (10) 120 (5) Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (65) 259 10 Labo Dolisos DOLI.PA (28) 110 (33) Matussiere et Forest S.A. MTF (78) 294 (28) Oeneo S.A. SABT.PA (12) 292 38 Pagesjaunes GRP PAJ (2718) 1121 (291) Pneumatiques Kleber S.A. (34) 480 139 Rhodia S.A. RHA (828) 6,681 171 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Selcodis S.A. SPVX (18) 128 22 Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Teamlog TLO (19) 109 (3) Trouvay Cauvin (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Cognis Deutschland GmbH & Co. KG (174) 3,003 606 Dortmunder Actien-Brauerei DABG (13) 118 (29) EM.TV AG EV4G.BE (22) 849 15 F.A. Guenther & Son AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Maternus Kliniken AG MAK.F (4) 201 (20) Nordsee AG (8) 195 (31) Plambeck Neue Energien AG PNE3 (4) 141 6 Primacom AG PRIG (268) 1,257 (1,048) Rinol AG RLIG (64) 104 (15) Schaltbau Hold SLTG (20) 162 (4) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) Vivanco Gruppe (33) 132 (45) GREECE ------ Empedos S.A. EMPED (34) 175 (48) Pouliadis Associates Corporation POUL (73) 68 (37) Radio A.Korassidis KORA (101) 181 (139) Commercial HUNGARY ------- Exbus Asset Management Nyrt. EXBUS (30) 118 (5,162) IPK Osijek DD OS IPKORA (18) 190 (320) ICELAND ------- Decode Genetics Inc. DCGN (55) 216 141 ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Compagnia Italia ICT (138) 527 (235) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (152) 732 (322) Gruppo Coin S.p.A. GC (154) 801 (50) I Viaggi del Ventaglio S.p.A. VVE.MI (61) 487 (57) Olcese S.p.A. OLCI.MI (13) 180 (64) Parmalat Finanziaria S.p.A. (18,419) 4,121 (12,481) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) Wind Telecomunicazioni S.p.A. (10) 12,698 (815) IRELAND ------- Waterford Wed Ut WTFU (203) 828 190 LUXEMBOURG ---------- Millicum International MICC (59) 1,523 4 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Petroleum-Geo Services PGO (32) 2,963 (5,250) BW Offshore BWO (85) 487 (516) POLAND ------ Mostostal Zabrze MECOF.PK (6) 227 (366) Vista Alegre Atlantis SGPS S.A. VAAAE (18) 193 (83) ROMANIA ------- Oltchim RM Valce OLT (45) 232 (321) Rafo Onesti RAF (395) 359 (1695) RUSSIA ------ East Siberia Brd VSNK (40) 106 (70) Gukovugol Pfd GUUGP (58) 144 (4094) OAO Samaraneftegas (332) 892 (16,942) Zil Auto (185) 378 (11,107) Vimpel Ship SOVP (77) 188 (927) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (10) 134 (37) SWITZERLAND ----------- Wedins Skor Accessoarer AB (10) 139 (129) TURKEY ------ Nergis Holding (24) 125 26 Yasarbank (948) 623 N.A. UKRAINE ------- Dnepropetrovsk Metallurgical Plant Imeni Petrovsko DMZP (11) 359 (596) Dniprooblenergo DNON (38) 478 (797) Donetskoblenergo DOON (166) 706 (1,320) Mariupolsky Meta MMKI (394) 172 (1640) UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) AEA Technology Plc AAT.L (24) 340 (50) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Anker Plc ANK.L (22) 115 13 Atkins (WS) Plc ATK (63) 1,279 69 BCH Group Plc BCH (6) 188 (44) Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) British Energy Ltd 523362Q (5,823) 4,921 290 British Energy Plc BGY (5,823) 4,921 434 British Nuclear Fuels Plc (4,248) 40,326 977 Britvic Plc BVIC (108) 874 (20) Cineworld Groug CINE (115) 748 7 Compass Group CPG (668) 2,972 (298) Costain Group COST (108) 595 (61) Danka Bus System DNK.L (108) 540 34 Dawson Holdings DWN.L (12) 158 (19) Dignity Plc DTY (55) 552 36 Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,264) 2,818 (253) Euromoney Institutional Investor Plc ERM.L (50) 448 (67) European Home Retail Plc EHRL (14) 111 (37) Galiform Plc GFRM (152) 889 35 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Gondola Holdings Plc GND.L (239) 987 (396) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (4) 948 (175) HOGG Robinson Gr HRG (258) 791 (5) Homestyle Group Plc HME (29) 409 (124) Imperial Chemical Industries Plc ICI (370) 8,393 2 Invensys PLC (1,031) 3,875 523 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (49) 307 (53) Ladbrokes Plc LAD (1,227) 1,669 (267) Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Micro Focus International Plc MCRO.L (72) 129 (4) Mytravel Group MT.L (380) 1,818 (488) Orange Plc ORNGF (594) 2,902 7 Park Group Plc PKG.L (5) 111 (13) Partygaming Plc PRTY (46) 398 (110) Premier Farner Plc PFL (33) 964 127 Premier Foods Plc PFD.L (31) 1,475 16 Probus Estates Plc PBE.L (28) 113 (49) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,144) 3507 (457) RHM Plc RHM (586) 2,411 59 Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Skyepharma PLC SKP (95) 211 (15) Smiths News PLC NWS (119) 225 (57) Telewest Communications Plc TLWT (3,702) 7,581 (5,631) UK Coal Plc UKC (25) 865 (62) Virgin Mobile Holdings Plc VMOB.L (490) 155 (80) Wincanton Plc WIN (66) 1,236 (71) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *